IMF: Low progress will final within the Eurozone. The enhance in debt will put the social mannequin in danger | EUROtoday

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“Timely political action helped avoid the worst and Europe continues to grow, but it is now becoming clear that Europe faces very low growth in the medium term.”

This unfavorable evaluation for the EU comes from the director of the Europe division of the International Monetary Fund, who participated in a convention organized by the ECB in Brussels, Alfred Kammer. Who indicated that until important interventions are made to revive progress, “traditional fiscal consolidation measures will not be sufficient to prevent debt levels from becoming explosive, putting the European social model at risk.”

In October the IMF estimated that Eurozone GDP will enhance by 1.2% this yr (estimate corrected upwards), nonetheless the development is short-lived and numerous components may decelerate the restoration in 2026, beginning with the impact of American tariffs on exports, which “will be increasingly felt, with the contraction of profits”. The GDP estimate for subsequent yr is +1.1%. Currently, the EU’s GDP per capita is nearly 30% decrease than that of the United States.

The title of his speech is important: «How Europe pays for issues it can’t afford».