Short-term fiscal pressures are more manageable than most investors realize, but problems will be far more difficult to deal with over the next 10 years, according to Andrew Milligan, the head of global strategy at Standard Life Investments in London. “There are significant long-term risks from high levels of public debt sector debt," Milligan told CNBC Wednesday. "In Particular, there are potential funding problems, crowding out effects and sovereign debt rating concerns for a decade to come." “We argue that the impact of tax increases and spending cuts will be more moderate than bearish commentators are arguing," he said. "However, we do warn about the longer-term risks facing governments: unfunded liabilities mean difficult tax and spending decisions.”