The IMF presents its annual report on the euro zone at a time of geopolitical, technological, and environmental change.
The report highlights the resilience of the single currency but warns of future challenges.
The needs for rearmament and decarbonization will increase the European budget by 50%.
Increasing defense expenses is a priority, following evidence from the war in Ukraine and the return of Trump.
Changes are needed for the EU's multiannual financial framework.
Bets on coordinated investments in innovation, clean energies, and defense could avoid costly duplications.
Declared urgency to deepen the single market and banking union to maintain competitiveness against its competitors.
Conclusion: With globalization and current challenges, Europe needs to aim higher and design its own path, moving away from orthodoxy to avoid irrelevance.