Experts say that interest rate hikes do not threaten the sustainability of debt in the euro area

Xinhua News Agency, Athens, July 7th (Reporter Yu Shuai Shuai) The head of the European stability mechanism and economist Claus Reaglin participated in a forum on the 7th that the process of interest rate hikes that the Central Bank of Europe will start will not start Treating a new euro crisis, the sustainability of the debt of member states of the euro zone will not be directly threatened.

Leglin said at the 26th "Economist" annual government round table meeting that despite the significant increase in public debt, the interest burden on the national public budget of the euro zone is still at the lowest level in half a century.

Greece is the country with the highest proportion of public debt in the euro zone to public debt. Leglin pointed out that most of Greece's debt is a fixed interest rate with an average period of about 20 years, so its debt sustainability will not be seriously affected. He believes that despite rising global interest rates, the debt sustainability of all euro -regional member states has not been directly threatened.

The European Central Bank announced in June that it will start the first interest rate hike cycle for more than 10 years. It plans to raise interest rates by 25 basis points in July and stop purchasing net assets from July 1. The market is generally concerned that with the end of the European Central Bank's debt purchase plan, the national financing costs of the euro zone will rise sharply, and the risk of debt crisis will rise.

The European stability mechanism took effect in 2012 and was a permanent rescue mechanism established by the EU after the debt crisis broke out.

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