Managing Director's Remarks to the Three Seas Initiative

IMF News, September 6, 2023

Source details

Meeting date: September 6, 2023.
The meeting takes place "at a challenging time, a time of weaker growth and widening divergence among regions and sectors of the economy."
Russia's war "inflicts a terrible toll on Ukrainian people" and "remains a drag on prospects across the Three Seas region."
Inflation remains difficult to control: "the fight against inflation has proven more difficult, meaning that higher prices will continue to weigh on vulnerable families for a while."
Tighter financial conditions are making "the economic environment more challenging than it was before the pandemic."
A wide range of risks noted: "additional war-driven shocks to food and fuel prices, the ongoing challenges of geopolitical fragmentation, climate change—they're all on your shoulders."

Economic stability
- "Countries that get the fundamentals right will be more successful."
- "This means fighting inflation until the battle is won."
- "Monetary and fiscal policy must work together."
- "We should never lose sight of the most vulnerable people in our societies."

Energy security and transition
- "Maintaining reliable energy supplies is crucial."
- European collaboration "to tap various sources and supply routes to quickly wean off Russian gas" is highlighted as precedent.
- Urgent transition to "climate-friendly, sustainable energy" framed as both necessity and "Great opportunity for growth and jobs."

Infrastructure and connectivity
- Investments in "transportation, and in digital infrastructure" are "fundamental" for the Three Seas Initiative.
- IMF simulations suggest "their impact could be doubled over the next 10 to 15 years if they are done right."
- Priorities include "improving connectivity across borders and regions" and "achieving the same efficiency of public investment as the EU-15 countries."
- Well-designed regulations should "ensure equal access to this new infrastructure for all users," expanding growth prospects for "small and medium-sized companies."

Business climate, transparency, and efficiency
- Improving "the workings of the government" to be "more transparent and more efficient" is essential to increase regional competitiveness as global supply chains shift.
- The IMF offers partnership: "This is an area in which we at the Fund are happy to partner with each and every one of you."

The Three Seas Initiative is recognized as "a catalyst for much needed private investment."
Focus on regional infrastructure addresses "a key growth bottleneck" and "can lead to collaboration in other areas."
IMF support emphasized: "As you work to strengthen this region's prospects, we stand by you."
Closing theme aligned with Romania's conference message: "Together, we are stronger."

Source: Managing Director's Remarks to the Three Seas Initiative (Opening Session of the Summit (Day 1) - Bucharest, Romania, September 6, 2023).