Banco Carregosa warns French debt crisis raises sovereign borrowing costs across countries
TLT•Banco Carregosa’s Gonçalo Moura Martins warned that France’s debt crisis could raise sovereign borrowing costs across countries, including Portugal. He said Portugal’s debt interest costs would reach €8.2 billion next year, up from €6.3 billion in 2026.
1. Rising borrowing costs
Gonçalo Moura Martins of Banco Carregosa warned that France’s sovereign debt crisis will raise borrowing costs across countries, including Portugal. He called French austerity inevitable, citing a deficit of 5.4% of GDP that could reach 6%. Martins said Portugal’s debt interest costs will reach €8.2 billion next year, up from €6.3 billion in 2026, despite declining debt. António Ramalho cited global public debt projected at 94.6% of GDP this year, versus about 80% before the pandemic; Martins said rising risk premiums could force intervention if investors shun sovereign debt and that selling pressure is already evident in the secondary market.
