The International Monetary Fund warns the EU: Government debt growth could harm the EU economy
According to a document provided by the International Monetary Fund to finance ministers of EU member states, as reported by U.S. publication Politico, the IMF has warned the EU that rising government debt in European countries could damage the region's economy.
In May 2025, the IMF previously cautioned that Europe would face a series of internal challenges threatening its long-term development, including population aging, low labor productivity, and an urgent need for coordinated energy policies.
The media cited content from an IMF document presented to finance ministers during their meeting in Nicosia, stating: "If left unchecked, government debt will head toward an unsustainable trajectory. Under current policy conditions, by 2040, debt levels in average European countries could reach 130% of their GDP—roughly double the current level."
The IMF also warned EU countries that spending on defense, energy, and pensions may increase over the next 15 years.
Source: sputniknews
Original article: toutiao.com/article/1866094766266368/
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