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REGIONAL ECONOMIC OUTLOOK
April 2024

A soft landing for Europe’s economies is within reach. Securing the baseline of growth with price stability will require careful monetary policy calibration. Faster fiscal consolidation would ensure buffers are adequate to tackle future shocks, while structural fiscal reforms would help address mounting long-term expenditure pressures. Beyond the near-term recovery, raising potential growth prospects calls for efforts at both the domestic and European levels. Measures should aim to raise labor force participation, prepare the workforce for looming structural shifts, set an enabling environment for private investment, and promote innovation on a level European playing field—especially when it comes to the green transition, including through a strong commitment to carbon pricing. Greater European integration would amplify the effect of these reforms. Formulating an ambitious set of growth-enhancing reforms should be a key priority of a new EU commission.

IMF Blogs - Europe

Euro Area Reports

Euro Area Policies: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Euro Area; IMF Country Report No. 23/264 (July 19, 2023)

A Bottom-Up Reduced Form Phillips Curve for the Euro Area (December 16, 2022)

U.S. and Euro Area Monetary and Fiscal Interactions During the Pandemic: A Structural Analysis (November 11, 2022) 

Biases in Survey Inflation Expectations: Evidence from the Euro Area (September 30, 2022)

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