EU Capitals Express Debt Fears Amid Calls for Fiscal Discipline

European Union capitals are increasingly concerned about rising government debt levels and are hesitant to grant further flexibility for government spending. This comes as bond markets are scrutinizing governments' credibility and borrowing costs have reached multiyear highs. The European Commission has cautioned against weakening fiscal rules, especially following a higher-than-expected Eurozone inflation rate of 3.8 percent in September.