European Central Bank Vice President Luis de Guindos has expressed concerns about the impact of high levels of sovereign debt on economic growth.

Speaking at Euro Finance Week in Frankfurt, he emphasized that increasing primary budget deficits could hinder governments' ability to invest in important areas such as climate change, defense, digitalization, and productivity enhancement.

Guindos highlighted that the growing debt burden may limit fiscal flexibility, leading to prolonged periods of low growth.

These concerns reflect broader worries within the financial community about the sustainability of government finances and the potential long-term effects on economic resilience.