Finland and Budget Deficit

negative repercussions: The rating was affirmed, according to Bloomberg. Moody cited the government worsening budget deficit and mounting debt as reasons for the weaker outlook. Prospects on the northernmost euro member long-term Aaa were lowered to negative from stable, the company said in a statement Friday. Finland has experienced, and continues to face, a prolonged period of low economic growth, which has reduced its economic resilience to shocks and also has negative repercussions for its public finances, Moody said. Rating companies, which for a time during the debt crisis rated Finland as the top credit in the single-currency region, are now starting to turn pessimistic as one government after another fails to live up to promises and economic contraction shows no signs of letting up. While there are some signs of positive momentum, potential growth remains low. (news.financializer.com). As reported in the news.