Competitiveness adjustment in struggling southern euro-area members requires persistently lower inflation than in major … trading partners, but low inflation worsens public debt sustainability. When average euro-area inflation undershoots the two … baseline scenario, the projected public debt ratio reduction in Italy and Spain is too slow and does not meet the European …

electricity prices and consumer inflation, for both Spain and Portugal. We find that the intervention led to an average reduction …. Regarding overall inflation, we observe notable differences between the two countries. In Spain, the intervention has an … of approximately 40% in the spot price of electricity between July 2022 and June 2023 in both Spain and Portugal …