The International Monetary Fund has advised EU finance ministers to adopt joint borrowing to fund energy, defense, and innovation. The IMF warns that without strategic reform and consolidation, public debt across the bloc could reach 130 percent of GDP by 2040. To attract private capital, the IMF suggests government guarantees for riskier low-carbon and climate-resilient investments. This approach aims to integrate energy markets and accelerate the transition to green infrastructure across the 27-nation bloc.
