German financial support will not exceed the identification tariff for the eurozone: the International Monetary Fund

The highest German infrastructure spending will increase the economic growth of Europe in the coming years – but not enough to excel the expected withdrawal from the American customs tariff, according to Alfred Camper, director of the European administration at the International Monetary Fund.

Last week, the International Monetary Fund reduced growth forecast for the eurozone, which also reduces discounts weand UK and Many Asian countries Because of President Donald Trump’s volatile policy.

The Foundation reduced the expectations of the eurozone growth for each of the next two years by 0.2 percentage points, to 0.8 % in 2025 and 1.2 % in 2026.

“It is a customs tariff and commercial tensions that affect expectations instead of positive effects on the financial side,” Cammer told CNBC’s Carolin Roth in an interview at the Bank World Spring meetings last week.

“What we see is that we have a meaningful reduction in advanced economies in Europe … and for the emerging emerging emerging region in this two -year period.”

The negative impact of the definitions will be compensated for a little The bill for spending the last infrastructure in GermanyCammer said, which will enhance growth in the euro area over these two years.

The exemptions moved to Germany Long -term debt rules They opened higher defensive spending and enabled the construction of 500 billion euros ($ 548 billion) an infrastructure and climate. This was the move Economists described it As a possible “game change” for the slow economy – the largest in the euro area.

However, optimism was shaken by the customs tariff, which is widely expected Reducing global growth and trade flows.

Many policy makers at the European Central Bank Tell CNBC last week While the inflation path seemed positive – with the tariffs of definitions that may lead to inflation in the mass further – its broadest view is now more nonexistent.

As the International Monetary Fund corridor, the European Central Bank should only reduce interest rates again this year, by a quarter of a percentage, despite the risk of growth.

The European Central Bank has so far reduced its prices seven times, by a quarter of a percent, starting in June 2024. Its last steps decreased in April, and the deposit facility, at its main rate, to 2.25 %.

“We have a very clear recommendation for the European Central Bank. What we have seen so far is a great success in inflation efforts, and monetary policy has succeeded … so we expect to reach the goal of inflation by 2 % in the second half of 2025.”

He added: “Our recommendation is that there is room to reduce 25 points in the summer, and after that the European Central Bank must believe that the policy average is 2 % unless the big shocks reach and there is a need to re -calibrate the monetary policy.”

The exchange rates of an indicator during the night on Monday indicated marketing expectations for two other discounts for this year.