Rebuilding fiscal buffers and addressing structural issues to improve resilience, and building support for euro area reforms are urgent, according to this economic assessment by the IMF. Although growth remains strong - projected to be 2.2 percent and 1.9 percent in 2018 and 2019 respectively - there are signs that it has peaked, and that risks are rising, including escalating trade tensions and policy complacency among euro area countries. The report suggests that policy inaction and political shocks are important domestic risks, especially with regard to rebuilding fiscal buffers in countries with high public debt, and implementing structural reforms. Strong policies are needed to buttress the euro area’s resilience.
http://www.imf.org/~/media/Files/Publications/CR/2018/cr18223.ashx

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