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

Egypt's Suez Canal Dreams Tempered by Continued Unrest

Seen as a potential driver of recovery, Cairo’s plan to expand waterway had been raising hopes to give country much needed economic boost More

Ebola Maternity Ward in Sierra Leone First of its Kind

Country already had one of world's highest maternal mortality rates before Ebola arrived, virus has added even more complications to health care More

Malaysia Flight 370 Disappearance Ruled Accident

Aircraft disappeared on March 8, 2014; with ruling, families of 239 passengers and crew can now seek compensation from airline 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.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long-distance communication contains mostly sounds and pictures - for now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

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

All About America

AppleAndroid

World Currencies

EUR
USD
0.8815
JPY
USD
117.85
GBP
USD
0.6581
CAD
USD
1.2420
INR
USD
61.404

Rates may not be current.