IMF: Europe's public debt could rise to 130% of GDP by 2040

The International Monetary Fund (IMF) has published a study warning that Europe's public debt risks becoming unsustainable without immediate measures from governments.

IMF economists emphasize that the fragmented approach of European countries is no longer sufficient, considering the increasing fiscal pressures generated by an aging population, the energy transition, and defense spending. If these challenges are not addressed, public debt could reach 130% of GDP by 2040.

The IMF recommends a more deliberate strategy that combines reforms and fiscal consolidation. It also suggests reviewing pension systems and stimulating economic growth as essential measures.

In conclusion, the IMF emphasizes that a reactive and fragmented approach to fiscal issues will no longer be viable, and difficult political decisions are necessary to ensure financial sustainability.