A soft landing in crosswinds leads to a lasting recovery
April 2024
IMF Europe Regional Economic Outlook: Turning Recovery into Sustained Growth Tuesday, May 14, 2024 | 8:30 AM ET
Speakers:
Alfred Kammer, Director of the IMF's European Department Maria Demerzis, Senior Research Fellow at Bruegel Christiane Nickel, Deputy Director, Economics Department, European Central Bank Moderator Maria Taddeo, Europe Correspondent A soft landing for a sustained recovery amid headwinds
A soft landing for the European economy is within reach. Ensuring a baseline of growth accompanied by price stability will require careful adjustment of monetary policy. Faster fiscal consolidation would provide sufficient buffers to deal with future shocks, while fiscal structural reforms would help address rising long-term spending pressures. Moving beyond a short-term recovery and enhancing the prospects for potential growth requires efforts at both national and European levels. Measures should aim to boost labour force participation, prepare the workforce for the looming structural changes, foster an enabling environment for private investment and, especially with regard to the green transition, promote innovation on a level playing field in Europe, including through a strong commitment to carbon pricing. Greater European integration would amplify the impact of these reforms. The formulation of ambitious pro-growth reforms should be a key priority for the new EU Commission.
