IMF urges EU fiscal revamp to ward off threat to bloc’s future

The IMF proposed the new fund as part of a broader overhaul of the Stability and Growth Pact, the main framework for EU fiscal policy

“Amid extraordinary economic uncertainty and fiscal challenges ahead, reform of the EU fiscal framework cannot wait,” said fiscal affairs department Director Vitor Gaspar. Picture: Andrew Harrer/Bloomberg.

The International Monetary Fund urged the European Union to revamp its fiscal framework amid high debt and rising interest rates, saying the reforms are critical to avoid debt crises that “could put the EU itself at risk.” 

“Amid extraordinary economic uncertainty and fiscal challenges ahead, reform of the EU fiscal framework cannot wait,” fiscal affairs department Director Vitor Gaspar, together with European section counterpart Alfred Kammer and strategy chief Ceyla Pazarbasioglu, wrote in a blog published Monday.