site.btaIMF Head Georgieva: US Policy Gives Chance to Europe to Take on More Responsibility for Global Leadership

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, said on Monday that the world is at a crossroads, but is showing resilience to the "shocks" of recent years. "In five years, we have experienced four major shocks in succession - the COVID pandemic, Russia's war in Ukraine, a spike in inflation and interest rates, and now a change in US trade policy," Georgieva said at an event marking the 30th anniversary of the establishment of the National Trust EcoFund, hosted by the St Kliment Ohridski University of Sofia.

"However, the world has shown resilience to these shocks, and we hope that this will continue," Georgieva added. According to her, in a period of slow economic growth and high debt in the world, “we must find a way to increase productivity, but to do it sustainably.” “However,” she added, “this can only be done with strong and functioning institutions.”

US policy gives Europe a chance to take on more responsibility for global leadership, and interest in such leadership is increasing, Georgieva said. She pointed out that Europe can create a single financial market and Europeans' savings can stay on the continent. Currently, Europeans invest EUR 300 billion in the US, because the EU does not have a single financial market, Georgieva said.

She expressed satisfaction with Germany's position to invest in infrastructure and defense, and congratulated German Ambassador to Bulgaria Irene Plank on Germany's decision.

"I hope that Bulgaria is now entering the eurozone de jure, where it has long been de facto," the IMF Managing Director said at the event.

"I am very glad that we are celebrating the anniversary of the EcoFund on the Day of Botev, June 2," Georgieva added. "What we have inherited from the past is to always look forward. The establishment of the EcoFund was part of Bulgaria's institutional transformation. It was founded in 1995 and together with the country itself, it went through a transition from almost absent market economy institutions to today’s well-functioning market economy," said the IMF Managing Director, who is among the founders of the EcoFund.