News / Economy

European Debt Crisis Dominates IMF Talks

Laurel Bowman

U. S. Treasury Secretary Timothy Geithner said Saturday that the euro area sovereign debt and banking crises are the biggest threats to the global economy and that European officials need to address and remedy that quickly.  Meanwhile, leaders of the International Monetary Fund say plans are underway to help stave off further financial crisis in Europe.

In years past, when world financial leaders have convened at the World Bank and International Monetary Fund, protesters have descended upon them, criticizing capitalism and denouncing greed.  

But the streets were quiet at this year's conference... some security, but mostly polite attendees walking to and from meetings.

There were smiles, as cameras flashed in photo ops, but beneath the surface ... a grimness.

“We are in a precarious situation.  We face a confluence of sovereign debt and banking risks with the epicenter of that being in the euro area,” warned Tharman Shanmugaratnam, chair of the International Monetary and Financial Comittee.

Europe’s problems, he said, are underpinned by a weakened global economy, especially in the U.S., compounded by a lack of confidence in fiscal policy actions in developed countries.

Earlier Saturday, U.S. Treasury Secretary Timothy Geithner, in his strongest language yet, said European leaders should work more closely with their central bank to ensure capital and liquidity remain available in what could be rough days ahead.

IMF Managing Director Christine Lagarde says that topic is on the table.

“However grave and serious the moment is we, and also and the global economy, is half way through the work that needs to be done," she said.  "If you look at financial regulation, if you look at crisis management, if you look at improved governance in the euro zone, if you look at strengthening the capital of the banks, a lot has already happened.”

Meanwhile, the finance chiefs of Brazil, Russia, India and China, the so-called BRICS countries, say they will do what they can to help stabilize the world economy.  Emerging markets in general have weathered the financial crisis better than developed economies.  

“Formerly with a cold in the advanced economies we would catch pneumonia," noted Nicolas Eyzaguirre, IMF Western Hemisphere Department Director.  "Looks like this time around the pneumonia is in the advanced countries and we will probably catch a cold.”

These countries still have to consider where to invest their resources.

You May Like

Philippines, Muslim Rebels Try to Salvage Peace Pact

Peace process faces major setback after botched military operation to find terrorists results in bloody gunbattle between government forces, Moro Islamic Liberation Front fighters More

Republicans Expect Long, Expensive Presidential Battle

Political strategist says eventual winner will be one who can put together strongest coalition of various conservative groups that make up Republican Party More

Video New Wheelchair Is Easier to Use, Increases Mobility

Engineers have come up with a lever-operated design that makes use of easily accessible bicycle technology More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.9211
JPY
USD
119.18
GBP
USD
0.6722
CAD
USD
1.2509
INR
USD
62.518

Rates may not be current.