Goldman Sachs International co-CEO Anthony Gutman says governments need to spend less and get the economy growing again to bring down rising borrowing costs.
Speaking on CNBC, Gutman pointed to the chaos in government bond markets, from US Treasuries to French bonds, as a major headache for everyone. He argued that the core fix is simple: lower fiscal deficits and stronger, long-term economic growth.
Gutman also voiced concern over the political instability in Europe, noting that upcoming elections, like the snap vote called by Spain’s Prime Minister Pedro Sanchez, only add to the uncertainty businesses are already struggling with. He stressed that while governments face tough choices, the current economic climate makes it even harder to find a way out.
Ultimately, Gutman hopes leaders will find the political will to combine lower spending with solid growth to restore stability.
