On May 19, 2025, Alfred Kammer, the Director of the IMF European Department, delivered a speech emphasizing the urgent need for growth and resilience in Europe amid various global challenges.

He outlined significant challenges facing Europe, including an aging population, climate change, a concerning productivity gap, and the necessity for improved national and energy security.

Kammer noted that the IMF projects global growth at just 2.8% for 2025, with Europe expected to see even lower growth rates of 0.8% and 1.2% for 2025 and 2026, respectively, largely due to trade and policy uncertainties.

To combat these issues, he called for coordinated actions to tackle both EU-wide and domestic policy challenges, aiming for a 5% output boost in advanced economies and up to 7% in Central, Eastern, and Southeastern European (CESEE) countries through comprehensive reforms.

Key reform areas identified by Kammer include enhancing labor mobility, simplifying insolvency rules, advancing the capital markets union, and better integrating the European electricity market.

He emphasized the necessity of reforms at both the EU and national levels to strengthen economic resilience and growth, particularly through the completion of the EU single market.

Looking ahead, Kammer urged that the upcoming EU budget for 2028-2034 should prioritize European public goods, consolidate fragmented programs, and enhance borrowing capacity for more strategic investments.

He warned that delays in fiscal consolidation could reignite concerns about repayment capacity and stressed the importance of avoiding tariff escalations amid ongoing global trade tensions.

Reflecting on Europe's past, Kammer highlighted significant income growth following World War II and the continent's resilience during crises such as the Global Financial Crisis and the COVID-19 pandemic.

In conclusion, Kammer asserted that Europe must act decisively and collectively to secure its future prosperity in a rapidly changing global landscape.