This peach tree is infected with a fungus called Taphrina deformans that propagates itself by spores that overwinter on the tree's bark and buds. In the spring it starts a new life cycle, especially if the weather is cold and rainy. It stops its growth when temperatures rise above 82 degrees F (or 28 degrees C), but when the temperatures drop, the fungus will resume its life cycle.
If the summer is also cold and rainy, then the fungus keeps repeating its life cycle and causes the leaves to drop, and therefore negatively affects the tree's resistance to low temperatures in winter.
To get rid of it you need to use a fungicide. Use the fungicide as stated on the label (too much will make the fungus resistant and too little will not kill it) and apply on very early mornings, and if not possible, then in the evening. Make sure to apply it on the back of the leaves for better effect.
If left untreated, it will make the tree lose 80% of its leaves and not being able to feed the fruits.