Executive Summary v

Choosing Growth: Reforms for Innovation, Scale, and Resilience 1

 Europe Is Growing Slowly in Difficult Circumstances 1

 Europe’s Critical Structural Challenges Remain 5

 Outlook and Risks: Mediocre Growth Continues into the Medium Term 9

 Macroeconomic Policies Will Need to Tread Carefully 11

 Reforms for Innovation, Scale, and Resilience 13

 Continuing the Energy Transition Will Build Resilience 15

 Europe Needs to Fix the Fundamentals to Create the Conditions for Innovation and Scale to Sustain Higher Growth 16

 CESEE Countries Need to Adapt Policies to Ensure Sustainable Growth 18

 References 20