Europe's debt levels impact growth and social budgets
The rising debt levels of European countries, especially France, which reached approximately 3.6 trillion euros (119% of GDP), are putting pressure on growth and social spending. It is expected that the debt-to-GDP ratio in the Eurozone will increase to 90.2% by 2026 due to rising defense and energy costs and declining revenues. Europe's economy is also experiencing a slowdown, with the International Monetary Fund forecasting growth of 1.1% in 2026. European governments are facing challenges in balancing debt reduction with meeting social demands, as the increasing costs of servicing the debt limit their options for spending on sectors such as health and education.
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