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Euronews
17 hours ago
- Business
- Euronews
IMF chief: European lifestyle is at risk if productivity isn't boosted
Europe needs to boost its growth in the face of global headwinds or risk losing its way of life, said the head of the International Monetary Fund Kristalina Georgieva on Wednesday. 'I don't want Europe to become the United States of America, but I want the productivity and functionality of Europe to go up,' she told Euronews. 'In Europe we enjoy being a lifestyle superpower. Unless we become more productive we may lose this advantage,' she added. Georgieva was speaking ahead of the publication of a new IMF statement on Thursday, which offers economic suggestions to eurozone nations. One key message is that Europe must speed up progress on the single market, which ensures the free movement of goods, services, capital and people between single market nations. 'There are no tariffs within Europe, but it doesn't mean there are no barriers in Europe, regulatory and otherwise,' Georgieva told Euronews. The IMF estimates that barriers to free movement in the single market are equivalent to a 44% tariff on goods and a 110% tariff on services. Georgieva noted that in the US, what is produced in one state is split 30-70, meaning 30% is consumed in that state and 70% is sent to other states. In Europe, on the other hand, 70% of production is consumed domestically while 30% is sent abroad. This is a set-up that limits growth by keeping markets smaller and less competitive. 'If Europe completes the single market, over 10 years, it would boost GDP by 3%,' said Georgieva. Means to advance progress on this front include lowering regulatory fragmentation, supporting labour mobility, facilitating cross-border banking mergers, integrating the energy market, and making progress on the capital markets union (CMU) — said the IMF. The CMU aims to allow investment and savings to flow seamlessly across member states. This would make it easier for businesses in one EU state to source funding from another EU state, supporting firms to grow and create jobs. In terms of deepening capital markets, the IMF's statement added that the EU should 'increase institutional investors' familitary with venture capital as an asset class and address remaining undue restrictions on their ability to invest in it'. Looking ahead, the IMF expects eurozone growth at a moderate 0.8% in 2025, picking up to 1.2% in 2026. Trade and geopolitical tensions are expected to dampen sentiment and weigh on investment and consumption. With regards to interest rates, the IMF argued that 'a monetary policy stance close to neutral is justified' as headline inflation nears the ECB's 2% target. When balancing spending pressures with fiscal sustainability, the IMF recommended that countries with strong public finances support countries with less room for manoeuvre. 'It is crucial that care be taken in implementing the EU fiscal rules to ensure that countries with low fiscal risks that intend to increase spending to boost potential growth and enhance resilience should not be constrained from doing so by the rules,' said Thursday's statement. As widely anticipated, the Bank of England (BoE) decided to keep its benchmark rate at a 2-year low of 4.25% on Thursday. This comes as fears grow that the conflict between Israel and Iran will escalate and that US tariffs will further fuel inflation. Six out of the nine-member panel of the monetary policy committee voted to hold, while three of them saw fit to cut. The bank lowered its rate to 4.25% in May, the fourth cut after an aggressive tightening period in 2022-2023. More cuts are still expected in the coming months by the market. The central bank's benchmark interest rate determines how banks change their rates on savings and loans. UK inflation, the primary figure driving the monetary policy committee's decisions, came in at 3.4% on Wednesday, far above the BoE's 2% target. Price increases, however, slowed slightly compared to the annual price change measured in April, which stood at 3.5%. The prevailing view at the bank was that inflation would remain elevated over the coming months but start to slow towards next year. But an uptick in oil prices, due to the current geopolitical crisis between Israel and Iran, could change this, as energy prices translate into the costs of producing and transporting all other goods. 'The risk to energy prices has clearly intensified and moved up the agenda given developments in the Middle East,' Sandra Horsfield, an economist for Investec, told AP. Uncertainty over the level of tariffs US President Donald Trump will impose around the world is also clouding the outlook for prices across the globe. 'We are still awaiting the full impact of Donald Trump's tariffs to show up in the prices of goods. We are approaching the end of the 90-day pause on reciprocal tariffs, and what happens from there is really anyone's guess,' Lindsay James, investment strategist at Quilter said. She added that even with the US-UK trade deal, the raft of tariffs on other nations would likely be felt in some form in the UK too. This will especially be the case if the UK's biggest trading partner Europe leaves the table with no agreement. While setting their focus on inflationary risks, the BoE also need to consider that growth in the UK economy is slow and could benefit from lower interest rates. In April, economic output sank by 0.3%, due to falling exports to the US and higher costs for businesses, including a tax raise. "The expectation is the UK economy will stagnate again in the second half, making the need for rate cuts more prominent," James said. "But with risks on the global stage not only uncertain but also substantial, the mantra of rates being 'higher for longer' will continue.'
Express Tribune
4 days ago
- Politics
- Express Tribune
450 pilgrims return from Iran
Deputy Prime Minister Ishaq Dar said hundreds of Zaireen evacuated from Iran and Iraq so far. PHOTO: RADIO PAKISTAN Listen to article Deputy Prime Minister and Foreign Minister Ishaq Dar has confirmed that 450 Pakistani pilgrims have been successfully evacuated from Iran, stating that the government was taking all necessary measures to ensure the safety of Pakistani nationals in the region. In a statement released on X on Sunday, Dar said the evacuation of 450 Pakistani pilgrims from Iran was completed on Saturday. He added that arrangements are also being made for the safe evacuation of the first batch of 154 Pakistani students stranded in Iran. The foreign minister further stated that efforts are underway to evacuate and ensure the safe accommodation of Pakistanis stranded in Iraq. "Our embassy in Iraq is in contact with Pakistani Zaireen who are stranded due to the closure of airspace. Measures are underway to ensure their safe stay in Iraq and possible evacuation," said Dar. A 24-hour Crisis Management Unit (CMU) is active at the Ministry of Foreign Affairs to assist Pakistani nationals. The CMU can be reached at +92 51-9207887 or via email at cmu1@ "Our embassies in the region are closely coordinating all necessary efforts to support Pakistani nationals and Zaireen," he added. In the early hours of Friday, Israel launched an attack on Iran, targeting the country's nuclear facilities, ballistic missile factories, and military personnel. The assault marked the beginning of what Israel described as a prolonged military engagement, carried out under the pretext of preventing Tehran from developing a nuclear weapon. Seventy-eight people, including six nuclear scientists and senior generals of the Islamic Revolutionary Guard Corps (IRGC), were killed in the attack. The semi-official Tasnim news agency identified the scientists as Abdulhamid Minouchehr, Ahmadreza Zolfaghari, Seyyed Amirhossein Faqhi, Motablizadeh, Mohammad Mehdi Tehranchi and Fereydoun Abbasi. Iranian ballistic missile attacks killed three people and injured at least 91 across central Israel, in response to Israeli airstrikes targeting key nuclear and military sites inside Iran. In the Tel Aviv suburb of Ramat Gan, nine buildings were destroyed and hundreds of apartments were damaged, Haaretz reported. Approximately 400 residents were evacuated from the Greater Tel Aviv area due to structural damage. Visuals showed widespread devastation, including vehicles set ablaze and residential blocks flattened.
Business Recorder
4 days ago
- Politics
- Business Recorder
Pakistan has evacuated 450 pilgrims from Iran so far: Dar
ISLAMABAD: In response to the deteriorating security situation in the region, Pakistan has evacuated 450 pilgrims from Iran and is working to assist others still stranded, Deputy Prime Minister and Foreign Minister Ishaq Dar said on Sunday. In a post on X (formerly Twitter), Dar said that the evacuation of Pakistani Zaireen (pilgrims) was carried out on Saturday, and efforts are currently underway to arrange the safe return of 154 Pakistani students who remain in Iran. He added that the Pakistani Embassy in Iraq is actively engaged with pilgrims stranded there due to the closure of airspace. 'Measures are being taken to ensure their safety and arrange possible evacuation,' Dar assured. The Foreign minister also stated that the Crisis Management Unit (CMU) at the Ministry of Foreign Affairs is fully operational and available 24/7 to assist Pakistani nationals in distress. Citizens can contact the CMU via phone at +92 51-9207887 or by email at [email protected]. 'Our embassies in the region are closely coordinating all necessary efforts to support Pakistani nationals and Zaireen,' he said. Amid rising tensions following Israeli air strikes, the government has issued a temporary travel advisory, urging citizens to avoid travel to Iran and Iraq. The Foreign Office advised all Pakistani pilgrims to reconsider their travel plans to both countries due to the evolving security environment. Officials emphasized that the government is closely monitoring the situation and remains committed to the protection and well-being of its citizens. Earlier, Prime Minister Shehbaz Sharif had directed all relevant departments to provide full assistance for the safe return of Pakistani pilgrims currently in Iran. Copyright Business Recorder, 2025
Express Tribune
5 days ago
- Politics
- Express Tribune
Pakistan plans repatriation of stranded students and pilgrims in Iran and Iraq
Deputy Prime Minister Ishaq Dar said hundreds of Zaireen evacuated from Iran and Iraq so far. PHOTO: RADIO PAKISTAN Listen to article Pakistan's Deputy Prime Minister Ishaq Dar has confirmed that, in light of the current regional situation, the government is taking all necessary measures to ensure the welfare and safety of Pakistani nationals. Speaking on Sunday, Mr Dar said the evacuation of 450 Pakistani pilgrims from Iran was successfully completed the previous day. He added that arrangements were also being made to safely evacuate Pakistani students residing in Iran, with the first phase involving the return of 154 students. In neighbouring Iraq, Pakistani pilgrims remain stranded due to airspace closures. Mr Dar assured that Pakistan's embassy in Iran is in constant contact with those affected, and efforts are underway to ensure their safe accommodation and potential evacuation. A 24-hour Crisis Management Unit (CMU) is active at the Ministry of Foreign Affairs to assist Pakistani nationals. The CMU can be reached at +92 51-9207887 or via email at cmu1@ Pakistan's embassies in the region are closely monitoring the situation and are fully engaged in providing assistance and overseeing the safe repatriation of citizens.
Business Recorder
5 days ago
- Politics
- Business Recorder
Pakistan evacuates citizens from Iran, Iraq amid regional tensions, sets up 24/7 crisis unit
Following the recent surge in regional instability, Pakistan has launched a swift evacuation operation to ensure the safety of its citizens abroad, Foreign Minister Ishaq Dar announced in a detailed update on social media. The government has already facilitated the return of 450 Pakistani pilgrims from Iran, with the first group arriving home yesterday. Authorities are now making arrangements to evacuate 154 Pakistani students currently residing in Iran, prioritizing their safe return amid growing security concerns. In Iraq, where airspace closures have left many stranded, the Pakistani Embassy in Baghdad is actively monitoring the situation and providing support to affected pilgrims. Officials are working to ensure temporary shelter and logistical assistance while exploring options for their eventual evacuation. To streamline emergency response efforts, Pakistan's Foreign Office has activated its 24/7 Crisis Management Unit (CMU), offering round-the-clock assistance to families seeking information about loved ones. The CMU can be reached at +92 51-9207887 or via email at [email protected]. In his statement, Foreign Minister Dar emphasized that Pakistani embassies across the region are closely coordinating all necessary measures to assist nationals. 'In light of the evolving regional situation, the Government of Pakistan is taking necessary measures for the welfare and safety of Pakistani nationals,' he said, underscoring Islamabad's commitment to citizen security.
