Euro Area Policies: 2025 Annual Consultation-Press Release; Staff Report; and Statement by the Executive Director for Member Countries

Despite recurring shocks, Europe’s economy remains resilient with record-low unemployment, declining inflation, and a stable financial system. However, policymakers face mounting challenges, including trade tensions, rising demand for defense spending, and the need to ensure energy security, all while addressing longstanding productivity challenges, rapid aging, and weak medium-term growth.