AI boom may increase borrowing costs for European governments, Deutsche Welle reports

US technology giants are issuing bonds in competition with European governments seeking to finance their operations, according to Deutsche Welle. This competition for investor capital could potentially push up borrowing costs across the continent.

Italy, with among the highest public debt levels in the eurozone, could be particularly affected by any sustained rise in borrowing costs. Higher yields would constrain fiscal flexibility for investment and policy initiatives.