Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary
European countries face rising spending pressures and higher interest costs that could sharply increase debt and threaten growth if left unaddressed. The paper argues that maintaining fiscal sustainability requires a coordinated strategy combining structural reforms and fiscal consolidation, and in some cases deeper changes to the role of government, as incremental approaches are no longer sufficientSubject:Expenditure, Fiscal consolidation, Fiscal policy, Fiscal stance, Public debt
Keywords:Aging, Climate, Data from European Union, Defense spending, Demographics, EU budget, EU climate goal, EU country, EU financing, Europe, Fiscal consolidation, Fiscal institutions, Fiscal policy, Fiscal stance, Health, Increase EU resilience, Inefficient spending, Long-term spending pressure, Member states, Pension spending, Pensions, Priority spending needs, Public debt, Spending needs, Spending pressure, Structural reforms
Pages:
84
Volume:
2026
DOI:
Issue:
012
Series:
Departmental Paper No 2026/012
Stock No:
EFSTRSPEA
ISBN:
9798229049306
ISSN:
2616-5333
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