09:41 | 25/11/2015 Global Economy
A worsening terrorist threat in Western Europe could eventually hamper economic growth in the region, ratings agency Standard & Poor's (S&P) said last week.
Military police soldiers patrol the Brussels Airport on November 18, 2015 in Zaventem, eastern Brussels - Dirk Waem | AFP| Getty Images
The warning follows Friday's attacks on Paris on Friday that left 129 dead and has since led to multiple police raids and arrests in France and Belgium this week.
"A surge in terrorism, Islamist or otherwise, is by itself unlikely to affect the sovereign ratings of Western European economies. That said, terrorism could gradually and indirectly hamper economic growth prospects in the region and have potential fiscal consequences for governments," Moritz Kraemer, S&P's sovereign global chief risk officer, said in a report on Thursday.
France's national assembly approved a bill to extend the country's state of emergency for three months on Thursday, which gives the state extra powers to confine and search people. French Prime Minister Manuel Valls has warned there is a risk of further attacks, including with chemical weapons, according to media reports.
Kraemer said that the possibility of repeated attacks could depress consumer and investor confidence in Western Europe.
The Paris attacks have also seen Europe's Schengen Agreement, which allows passport-free travel between 26 European countries, come under question because of security concerns.
However, Kraemer said that policymakers would likely go to great lengths to "prevent lasting damage to what encapsulates the very essence of the EU (European Union)."/.