Press Release|Sovereigns
KBRA Releases Research – A Fractured Europe Faces Rising Fiscal Strain
20 Aug 2025 | Dublin
KBRA releases research that takes a deep dive into how rising political fragmentation across Europe is constraining governments’ ability to pass reforms, build consensus, and sustain fiscal strategies. With coalition and legislative gridlock increasingly the norm, policymaking has slowed just as countries face mounting fiscal pressures from ageing populations, climate investment, defence, and rising debt costs. This combination risks undermining fiscal credibility and weakening sovereign resilience at a critical time.
- Political fragmentation across Europe is slowing reform momentum, weakening fiscal credibility, and complicating consensus-building.
- Mounting fiscal pressures from ageing populations, climate investment, defence spending, and rising debt costs are straining budgets.
- Addressing these challenges demands political cohesion and long-term planning despite the growing fragmentation.
Click here to view the report.