IMF Warns Eurozone Debt May Exceed 100% of GDP Amid Economic Uncertainty
April 24, 2025
The International Monetary Fund (IMF) has issued a warning regarding the significant rise in debt levels across Europe due to ongoing economic uncertainties.
According to the IMF's projections, public debt in the Eurozone could surpass 100% of GDP, raising alarms about long-term fiscal sustainability.
The resurgence of debt is largely driven by inflation, geopolitical tensions, and the ripple effects of global monetary policies, as noted by the IMF.
This warning arrives amid various economic pressures, including the effects of U.S. tariffs and potential shifts in the European Central Bank's monetary policy.
In response, the IMF has urged European nations to implement structural reforms aimed at enhancing economic resilience and effectively managing their debt levels.
As governments grapple with rising borrowing costs, the IMF stresses the importance of maintaining investor confidence to avert a potential debt crisis.
Countries throughout Europe are anticipated to encounter significant challenges in managing their debt as they adapt to a new economic landscape marked by increased volatility.
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POLITICO • Apr 24, 2025
Europe’s debt set to surge again in new era of uncertainty, IMF warns