Fitch: New crisis increases pressure on Europe, Cyprus among the most resilient countries

The new energy crisis caused by the conflict surrounding Iran is increasing pressure on the economies of Western European countries. According to an analysis by the Fitch ratings agency, rising energy prices, accelerating inflation, and slowing economic growth pose serious risks to the financial stability of several European states.

According to the agency's assessment, Belgium, France, and the United Kingdom remain the most vulnerable, with limited financial safety margins. Fitch notes that many countries have already approached the new crisis with high levels of deficit and debt burden, and deteriorating financing conditions only increase pressure on budgets.

At the same time, states that have adhered to stricter fiscal discipline in recent years have more room to support their economies. These include Cyprus, Greece, Ireland, the Netherlands, Portugal, and most Scandinavian countries. However, analysts emphasize that even these states will have to act cautiously to avoid a new increase in national debt.

Situation in Cyprus

Cyprus has emerged among the EU countries with the most stable financial positions in the face of the new energy crisis. Fitch believes that the consistent fiscal policy of recent years gives the republic a certain safety margin to support the population and businesses in case of further deterioration of the situation.

Nevertheless, experts warn that Cyprus remains sensitive to external energy and geopolitical shocks due to the economy's dependence on tourism, transport, and energy imports. Authorities are likely to strive to maintain a balance between support measures and control over the budget deficit.