11/06/2026 - 18:08 GMT+2
Euro area countries should not further relax fiscal measures to tackle the current energy shock but rather improve their budget balances, with additional effort asked of high-debt countries, the International Monetary Fund (IMF) has warned.
"Further relaxation of fiscal rules risks undermining the credibility of the framework and placing debt on an even higher path," the IMF wrote in its annual assessment of the euro area economy, released on Thursday.
An excessive deficit procedure of 1.5 percent is already in place across the bloc, allowing for defence spending, but EU countries most impacted by the energy crisis are asking for a further relaxation of fiscal rules. As the Middle East war rages on, European importers heavily relying on oil and gas are being hit particularly.
The latest economic forecasts have shown the crisis starting to bite. Inflation is rising and growth is slowing, while the European Central Bank announced on Thursday a raise of interest rates by 0.25% – likely not for the last time this year.
