WASHINGTON, October 8, 2025 — The International Monetary Fund (IMF) has urged the European Union to move beyond rhetoric and act decisively to restore its economic competitiveness.
“The bloc knows what needs to be done,” said IMF Managing Director Kristalina Georgieva, referencing the report authored a year ago by former European Central Bank President Mario Draghi, which laid out comprehensive proposals to revive Europe’s economy.
“The European project must be finalized,” Georgieva stated ahead of the IMF and World Bank Annual Meetings in Washington, describing it as the only way to regain the private-sector dynamism seen in the United States.
Among the measures Europe should consider, Georgieva highlighted the creation of a Single Market Commissioner with real authority to implement necessary reforms, replacing the current fragmented system of divided responsibilities among several EU commissioners.
She emphasized that Europe must end existing resistance among member states in areas such as labor markets, trade in goods and services, energy, and finance. This includes establishing a unified financial system and achieving energy integration across the continent — both long-standing IMF recommendations.
Despite her critical tone, Georgieva expressed cautious optimism about Germany, noting that recent financing plans, particularly in infrastructure, could help stimulate private investment.
“These investments will strengthen incentives for private sector participation, which will be particularly beneficial as Germany seeks to restart a new growth cycle in favor of its private industry,” Georgieva concluded.
