The eurozone's fiscal policy is regaining prominence as member states prepare their 2026 budgets, with a focus on deficits and public finance sustainability. The IMF forecasts a worsening fiscal outlook, with budget deficits and government debt expected to rise. Countries like France and Belgium will see significant increases in debt levels, while Spain and Portugal are projected to reduce theirs. The shift in fiscal policy is driven by Germany's fiscal package and increased defense spending. The bond market's reaction to rising debt levels could further strain national budgets, emphasizing the need for better investment strategies.