EU Must Reform, Consolidate, Use Joint Debt to Cope with Spending Needs, IMF Says
- The International Monetary Fund told European Union finance ministers in Nicosia on May 23 that member nations face large bills for defence, energy, and pensions over the next 15 years, suggesting reforms, consolidation, and joint borrowing to manage costs.
- Under unchanged policy, debt of the average European country could reach 130 percent of GDP by 2040, roughly doubling from today, as the IMF warned the 'muddling-through' approach is 'reaching its limits.'
- To manage these pressures, governments should integrate energy markets and unify laws to improve efficiency, while Pension reforms and higher retirement ages would help attract private capital to low-carbon projects.
- While Spain, Italy, and France favor Joint borrowing to pay for public goods, Germany and several northern European countries strongly oppose the 'highly controversial issue,' exposing deep divisions within the bloc.
- Finally, Kyriakos Pierrakakis, chairman of euro zone finance ministers, told Reuters that while opinions differ, the proposal will be discussed in the coming months as officials seek consensus.
13 Articles
13 Articles
The European Union is increasingly heading towards a debt union. The Brussels power apparatus is supported by the globalist International Monetary Fund, which promotes a massive European Community debt to cover up national budgetary disasters. The real objective of this agenda is the rigorous conversion of the system from a still semi-functioning market economy into a centrally managed state economy. At the time when one wanted to introduce the …
Fund estimates that the average European country's public debt can reach 130% of GDP by 2040 if governments maintain current policies
Public debt in the EU is expected to reach 130% of GDP by 2040 without measures, IMF estimates - Proposes reforms, fiscal consolidation and joint borrowing
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