EU Public Debt to Reach 130% of GDP by 2040 Without Policy Adjustment, IMF Warns

GateNews

According to the International Monetary Fund, if left unaddressed, the EU's average public debt will reach 130% of GDP by 2040 under current policy paths—nearly double today's levels.

The IMF recommends EU member states boost incentives for labor mobility across the bloc, deepen energy market integration, facilitate cross-border capital flows, and harmonize divergent regulations to reverse the trajectory.

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