KBRA releases research that examines sovereign credit fundamentals in Europe which, in our view, are underpinned by resilient labour markets, fiscal adaptability, and easing financial conditions.

KBRA Releases Research – Steady but Strained: Europe’s Path Through Mounting Global Challenges. While political fragmentation continues to weigh on policy cohesion—particularly in France, Spain, and the Netherlands—investment is rebounding and early signs of a manufacturing upturn offer support to near-term growth. Energy prices have also moderated and are no longer a core inflation driver, though structural constraints could reassert pressure beyond this monetary cycle. While these risks remain, the region’s stability provides a constructive, if cautious, credit backdrop.