In remarks to the informal meeting of economic and financial affairs ministers in Dublin, International Monetary Fund Managing Director Kristalina Georgieva urged Europe to accelerate policymaking and participate across the artificial intelligence value chain as an AI provider, builder and adopter. She identified five priorities: expanding patient risk capital, integrating energy markets, increasing business flexibility, preparing workers for occupational shifts and deploying digital public infrastructure and AI across government. The proposed measures include developing a pan-European Union venture capital industry through regulatory convergence, selectively using public equity investment to address market failures and reassessing taxation as AI changes the distribution of income between labor and capital. Georgieva also called for greater connectivity between national electricity grids, progress on an optional EU-wide corporate law framework known as the 28th regime, and stronger training and social support for displaced workers. Data centers already account for about 3% of European power consumption, with AI-driven demand likely to triple by 2030. Georgieva also highlighted macroeconomic and financial risks. The IMF estimates AI could eventually raise global annual potential growth by 0.1 to 0.8 percentage points, but affect up to 60% of jobs in advanced economies and hollow out middle-skilled employment. A preview of the forthcoming Global Financial Stability Report identified an AI-driven market correction as a key risk, with leverage, circular financing and cross-border holdings of U.S. equities potentially amplifying forced selling if earnings or investment disappoint. Regulators and supervisors should ensure the financial system can withstand such a correction while Europe retains its AI safeguards.

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