Fitch Ratings says 2013 gross government borrowing for European sovereigns will be materially down compared to this year's financing needs.
"Fiscal tightening is delivering results in spite of the macro-economic headwinds. Central government net borrowing estimates for 2013 indicate an impressive 13 per cent reduction on 2012 levels", says Douglas Renwick, Senior Director, in Fitch's Sovereign team.
"Refinancing needs - the largest portion of gross borrowing for European governments - are down 6 per cent year-on-year in 2013. Greece and Portugal have seen particularly sharp decreases in medium- and long-term debt maturities following a restructuring and debt swap respectively", adds Robert Shearman, co-author of today's report and member of Fitch's Sovereign team.
With the UK now also on negative rating outlook (since March), 74 per cent of the EU15 gross borrowing requirement for 2013 is by governments with a sovereign rating which is on a negative outlook or watch.
The report, entitled "European Government Borrowing for 2013: Hope Ahead", is available at www.fitchratings.com.
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© Fitch, Inc.
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