EU joint debt should help fund major spending needs as the bloc faces rising costs, the International Monetary Fund said in Nicosia on May 23.
The IMF said European Union countries must reform, pool resources and consolidate public finances. It warned that small budget changes would not meet future demands.
The European Union, based in Brussels, spans 27 member states across Europe. Its governments face larger bills for defence, clean energy, green technology and infrastructure.
The IMF said most EU countries need fiscal consolidation to put public debt on a downward path. It also urged the bloc to deepen financial and capital market integration.
The IMF warning came as Europe faced pressure from the Ukraine war, energy security costs and weaker competitiveness. The fund said joint borrowing could support projects that serve the whole bloc.
Read:UK EU Goods Market Plan Faces Brussels Scepticism
The report also came as the United Kingdom floated a separate single-market-for-goods proposal with the EU. Media reports said that the idea faced scepticism in Brussels.
