The last time European governments faced a financing challenge was 2012. It was resolved through a combination of political will, central bank action and fiscal discipline. That option is still available to the latest European government to find itself in difficulty. The governments that faced the problem have all come out the other side, but their populations paid for it. Greek real GDP fell by more than a quarter from its 2008 peak and is still around 13% below it today. Portugal and Spain each lost close to a tenth of output. Italy did not get back to its 2008 level until 2022.
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