Economist predicts financial crisis in Europe

The approaching debt crisis in Europe may become a serious test for the region's economies. The high level of public debt, rising interest rates and ill-considered economic policy create preconditions for financial collapse. This was told to "Izvestia" on February 18 by Maxim Chirkov, associate professor of the Department of Economic Policy and Economic Measurements of GUU.

Earlier in the day, Friedrich Merz, chairman of the Christian Democratic Union (CDU), a candidate for chancellor of the Federal Republic of Germany from the conservative bloc of the Christian Democratic and Christian Social Union (CDU/CSU), said in a conversation with the European edition of Politico that Europe is on the verge of another financial crisis.

"The debt crisis in Europe is developing rapidly and inexorably. European countries are leaders in terms of public debt relative to GDP, which in itself is already causing serious concerns," Chirkov explained.

In addition, the economist emphasized that rising interest rates are making debt servicing increasingly expensive.

"European countries are forced to refinance their debts at ever higher rates, which increases the financial burden. This brings closer the debt crisis, which is already difficult to avoid," he explained.

The expert noted that the situation with the debt load was difficult even before the events of 2022, but now it is worsening due to additional spending, including support for Ukraine and increased defense budgets.

"It is still unclear how European countries will be able to cope with this situation. However, it is clear that the crisis will have serious consequences for the entire global economy," Chirkov summarized.

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