(ANSA) - MILAN, JAN 04 - Although debt refinancing has become "more expensive for governments" due to the rise in interest rates, the Eurozone's debts may remain "sustainable" because "high inflation tends to improve some relevant data of fiscal sustainability", causing an increase in nominal GDP and a simultaneous "reduction in the debt-to-GDP ratio".
This is what is stated on the ECB blog by a study by Frankfurt economists entitled 'Fiscal policy: from a free lunch to an affordable one', in which it is noted that "despite the rise in interest rates, the government debt may remain on a solid path".
(HANDLE).