IMF WARNING: Europe’s ‘Explosive’ Debt Could Blow by 2040—Calls Grow for New Social Contract and EU‑Wide Borrowing
The IMF warns Europe’s public-debt ratio could reach 130% of GDP by 2040, up from about 80% today, without policy changes. IMF Europe chief Alfred Kammer said on Nov 4 that “doing nothing is not an option.” The Fund urges reforms and more joint EU borrowing to fund defence, energy, and innovation. New EU fiscal rules took effect in January, with five countries granted extended adjustment periods.