IMF warns Europe on debt: could rise to 13% of GDP by 2040

The International Monetary Fund (IMF) warned EU finance ministers in a report submitted to them that without implementing structural reforms, Europe's debt burden could rise by 13% of GDP by 2040. According to the report as cited by Cumhuriyet Gazetesi, the IMF stressed that current policies are unsustainable and that "the limits of a day-to-day approach have been reached."

The report emphasizes that EU member states need to fundamentally restructure their fiscal policies. Europe's aging population, high defense spending, and slowing growth rates emerge as the main factors increasing debt pressure.

The IMF's statement entered the public agenda at a time when concerns about the EU's economic future are mounting. Given Turkey's trade and financial relations with the EU, this scenario carries significance as a development that should be closely monitored from the perspective of the Turkish economy.