Europe’s Fiscal Squeeze: Tackling Rising Spending Pressures

The paper discusses policy responses that would allow Europe to pay for rising demands on public spending (defense, energy security, ageing), while avoiding an explosion of public debt.
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Volume/Issue: Volume 2026 Issue 012
Publication date:
ISBN: 9798229049306
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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Labor , Economics- Macroeconomics , Public Finance , Aging , Climate , Data from European Union , Defense spending , Demographics , EU budget , EU climate goal , EU country , EU financing , Europe , Fiscal institutions , Fiscal policy , 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 , Fiscal consolidation , Fiscal stance

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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 sufficient

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