Over the last decade, the EU economy has experienced slow growth, and it is not expected to grow substantially in the coming years. Additionally, the ongoing demographic and epidemiological transition is increasing pressure on public finances, particularly healthcare and social expenditure.
The current permacrisis – encompassing geopolitical and climate-related challenges – exacerbates these issues and directly threatens fiscal sustainability through slower economic growth, increased Government deficits, and consequently, higher public debt levels. Addressing these intertwined challenges is essential to ensure the long-term sustainability of healthcare, social care, and welfare systems across the EU.
Read the full report by the European House – Ambrosetti.
