Swiss Finance Minister Karin Keller-Sutter has warned that rising public debt across European Union countries could pose a threat to the stability of the euro, saying a worsening debt crisis in major economies, particularly France, could trigger broader financial turmoil.
In a radio interview, Keller-Sutter said Switzerland could be affected by external financial crises because of the close links between European economies. She warned that mounting public debt in major countries could lead to a debt crisis with consequences extending beyond national borders.
The minister expressed particular concern over France’s fiscal situation, saying it could contribute to a euro crisis. She also pointed to other financial stability risks, including the possibility of market corrections.
Energy Prices Add to Economic Concerns
Keller-Sutter said rising energy prices and growing concerns over the security of energy supplies were additional factors that could increase economic instability.
Her remarks reflect concerns that mounting debt pressures, combined with higher energy costs, could create further challenges for European markets and the Swiss economy.
EU Budget Proposal Sparks Disputes
Separately, the European Commission has proposed a multi-year budget for 2028–2034 worth approximately €2 trillion. The proposal includes increased spending on defense, efforts to strengthen competitiveness, and support for Ukraine.
The plan has sparked disagreements among member states over the budget’s overall size, how funding should be allocated, and proposed new revenue sources to finance the spending.
Adopting the budget requires unanimous approval from all EU member states, as well as the consent of the European Parliament, making negotiations a key step in determining Europe’s spending priorities for the coming years.
