The IMF says European economies must grow faster or borrow less to keep debt on a sustainable path, warning that doing nothing is not an option. It forecasts euro zone growth of 1.1% in 2026 and 1.2% in 2027, with inflation at 3.1% in 2026, 2.8% in 2027 and 2.2% in 2028. About three-quarters of European countries need structural reforms plus deficit-reducing consolidation of around 3.5% of GDP on average, and about one-quarter would need more than 5% of GDP. European Commission projections show the EU's debt-to-GDP ratio rising from 82.8% at end-2025 to 85.3% by end-2027, while weak productivity is identified as the biggest obstacle to faster growth.
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