IMF warns EU must reform and use joint debt for spending
The IMF told EU ministers that joint debt and pension reforms are needed to manage rising costs. Without action, average debt could hit 130 percent of GDP.
Xurve View
Xurve View
The International Monetary Fund warned that average debt in the European Union will reach 130% of GDP by 2040 without structural reforms. This projection represents a doubling of current debt levels over the next 15 years as defense and energy costs rise. Investors face long-term fiscal instability unless the bloc adopts joint borrowing and labor market integration to fund essential public goods.
