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There is no evidence that the European Central Bank intervened to support high-debt economies, despite a widening of sovereign spreads in March. Daniel Kral highlights that the largest debt roll-off from the ECB's balance sheet once again occurred in Italy.
Kral points out that this trend continues to shape the dynamic between the ECB and highly indebted countries.
Kral has recently examined other economic pressures in the region. He found that all EU member states recorded goods trade deficits with China in 2023. In a separate analysis, he identified oil prices as a key factor in EU consumer energy costs following a recent gas price anomaly.