Moody's said Friday there is a debt
risk for NATO countries if the race to rearm is triggered by
Russian threats in the Ukraine war with Italy and Spain
particularly exposed.
The race towards rearmament in NATO countries triggered by
Moscow's threats "will complicate debt reduction efforts and
could weaken their credit profile", exacerbating social
conflict, said the US ratings agency.
"Spain and Italy are particularly vulnerable", having "the
largest gaps in defence spending (compared to the NATO target of
2% of GDP, ed.) and the lowest levels of popular support for
further increases in military spending".
In the base scenario, Moody's said, Italy's debt would rise to
144% of GDP in 2030, but would reach 147% if the 2% target is
reached.
Russian President Vladimir Putin on Thursday threatened to
strike NATO bases if F-16s used in Ukraine fly from them.
NATO has long denied Kyiv's demand for the fighters but is now
expected to grant the request some time soon.
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