IMF Warns Europe Must Boost Growth or Cut Borrowing
The IMF warned that European nations must accelerate economic growth or reduce borrowing to keep public debt sustainable. Most countries will need structural reforms and fiscal consolidation to address rising debt levels driven by ageing populations and higher spending.
European economies must accelerate growth or reduce borrowing to keep public debt on a sustainable path, the IMF warned on Friday. The warning arrives as euro zone debt is projected to climb to 90.2% in 2026 from 88.7% in 2025. Without policy shifts, unchecked spending on ageing populations and defense could eventually double debt levels.
