Moody’s: Disco on Italy’s public debt in case of defence spending at 2%

In the event of 2% of its GDP’s military spending, its public debt will rise to 147% of GDP in 2030, the rating agency reports, according to an ERT report. According to Italy’s news agency, ANSA, “the armed race of NATO countries triggered by Moscow’s threats will complicate debt reduction efforts and could weaken their credit profile, aggravating social conflicts”, while Moody’s knocks the alarm: “Spain and Italy are particularly vulnerable,” having “the biggest gaps in defence spending (in relation to NATO’s 2% GDP target) and the lowest levels of popular support for further increase in military spending,” ANSA broadcasts. Source: ERT