Europe has so much more room to produce improved productivity, IMF official says
The IMF European Department Director Alfred Kammer discusses the continent's competitiveness and productivity challenges, and preparing the Single Market for geopolitical uncertainty.
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Sporting goods group backs EU single market strategy, unified EPR
The European Commision's strategy is aimed at revitalising the Single Market given the European market boasts a GDP of €18tn ($20.58tn) and stands as the world's second-largest economy (nearly 18% of the global economy). Encompassing 30 states, the European Market serves 450m consumers and includes 26m businesses, providing expansive access to an array of products, services, and investment opportunities. The new Single Market Strategy responds to the European Council's request in April 2024 for the commission to formulate a comprehensive single market strategy by June 2025. The comprehensive plan includes over 50 proposals designed to facilitate business operations within the Single Market by focusing on the elimination of trade barriers, fostering job creation, and driving economic growth. The strategy emphasises on priorities such as the removal of barriers to trade, injecting vitality into Europe's service sector, bolstering the development and expansion of small and medium-sized enterprises (SMEs), simplifying current regulations, mainstreaming digitalisation, and enhancing collective governance and ownership of the Single Market. The sporting goods industry, represented by FESI, has expressed its support for the identification and planned removal of fragmented labelling requirements and Extended Producer Responsibility (EPR) schemes, which are part of the "Terrible Ten" barriers addressed in the new Single Market Strategy. These issues have historically presented substantial hurdles for both large brands and SMEs, leading to administrative burdens, waste generation, and hindrances in adopting sustainable practices across national borders. FESI secretary general Jérôme Pero said: 'The recognition of packaging, labelling and EPR fragmentation as major market barriers is a direct reflection of the concerns our industry has raised for years. Today's strategy is a step in the right direction – we now want to see those words turned into action.' The implementation of these changes is anticipated to provide significant relief for businesses, particularly SMEs that have been grappling with varying compliance requirements across different countries. Despite this positive outlook, FESI expressed concern regarding recent actions by the EC which seem contradictory to the strategy's objectives. This concern stems from the commission's approval of France's Ecoscore system shortly before announcing the new strategy, a move that could potentially lead to further regulatory fragmentation. 'We welcome the strategy's ambitions, but coherence will be key. Approving national measures like Ecoscore while committing to harmonisation raises questions. We urge the commission to ensure its own actions do not undermine the goals it has set today,' Pero stated. FESI has pledged its support during the implementation phase of the proposed strategy and is keen on collaborating with both the commission and member states to achieve swift and enforceable results. In addition, the sporting goods industry in Europe, primarily composed of SMEs, expressed its willingness to contribute actively towards creating a more competitive, sustainable, and fully integrated Single Market. FESI represents approximately 1,800 manufacturers with 70 to 75% of its membership consisting of SMEs. In April this year, the federation welcomed the European Parliament's approval of the revised Ecodesign for Sustainable Product Regulation (ESPR), but raised concerns about plans to ban the destruction of unsold goods, particularly in relation to goods that infringe intellectual property rights. "Sporting goods group backs EU single market strategy, unified EPR" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
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EU budget needs 'a comprehensive overhaul' to handle shocks, says IMF
The EU needs to spend more on public goods to strengthen productivity and growth, said the International Monetary Fund on Tuesday. Speaking at the annual EU budget conference, Alfred Kammer, the IMF's European department director, noted that 'the scale and nature of the challenges ahead require a fundamental rethink'. Kammer suggested that the EU should raise its spending on public goods from 0.4% of GNI (gross national income) to at least 0.9%. Without cuts to existing programs, that would increase the bloc's MFF spending to 1.7% of GNI in the period from 2028 to 2034. That's up from 1.1%, Kammer added. The MFF is the EU's long-term budget which usually covers a seven year period, with the current plan running up to 2027. The IMF noted that Europe is facing a raft of challenges, notably ageing populations, the climate crisis, and a productivity slump. Rising geopolitical tensions and unpredictable US policies are further clouding the region's outlook, as the EU must become more self-sufficient in terms of security. One way to tackle these issues is by boosting growth and improving the single market, said Kammer. While goods, services, capital and people can in theory move freely between member states, the IMF warned that barriers still exist. Related IMF chief: Eurozone has tools for greater growth if it learns from US Capital Markets Union: What is it and what could it bring to Europe? 'The EU single market remains far from complete,' Kammer said at the Centre for European Policy Studies (CEPS) in a separate briefing on Monday. 'For instance, it can take up to 6 months for an EU worker who relocates to another EU country to be legally employed there. Large differences across bankruptcy procedures discourage cross-border investment, while having national stock markets introduces vast inefficiencies in the allocation of capital across the continent. This fragmentation increases costs and hurts business dynamism and growth.' The IMF said it expects growth at 0.8% and 1.2% in 2025 and 2026, a reduction of 0.2 percentage points in both years compared to the projection shared in January. It noted that inflation is decelerating and approaching targets, driven by lower energy prices and tepid demand. Regarding the ECB trajectory, it said the central bank should lower its policy rate to 2% this summer and leave it stable for the foreseeable future. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
28-04-2025
- CNBC
Europe has so much more room to produce improved productivity, IMF official says
The IMF European Department Director Alfred Kammer discusses the continent's competitiveness and productivity challenges, and preparing the Single Market for geopolitical uncertainty.
