News / Europe

IMF's Lagarde Calls for Eurozone Debt Sharing

International Monetary Fund managing director Christine Lagarde (L) speaks at a news conference at the Treasury in London, May 22, 2012.
International Monetary Fund managing director Christine Lagarde (L) speaks at a news conference at the Treasury in London, May 22, 2012.
VOA News
The chief of the International Monetary Fund is calling for the 17-nation euro currency bloc to accept more liability for each others' debts, but economic powerhouse Germany says it remains adamantly opposed to selling joint eurozone bonds.

IMF Managing Director Christine Lagarde told a London news conference Tuesday that with the economy contracting in the eurozone, more needs to be done to boost its growth and that wealthier countries need to share the burden with their debt-ridden neighbors.

"We consider that more needs to be done, particularly by way of fiscal liability sharing and there are multiple ways to do that," she said. "More needs to be done in relation to supporting growth, particularly by way of structural reforms, certainly not by way of, you know, suggested stimulus because we do not think that the fiscal position of the member states can actually bear that on an aggregate basis."

"So, there is still work under way but we certainly hope that the monetary zone that has been built for the last ten years will continue to be developed, to be strengthened and that the political will of the members will actually be conducive to that effect," she added.

The Organization for Economic Cooperation and Development, representing 34 of the world's largest economies, also called for selling joint bonds. The OECD slashed its forecast for the eurozone economy, predicting it would contract this year by one-tenth of a percentage point, down from the meager two-tenths of a percent growth it had earlier projected.

New French President Francois Hollande is expected to push for the sale of eurobonds when the European Union's 27 leaders meet in Brussels Wednesday.

But Germany, with the eurozone's strongest economy, and other wealthier, northern European countries have been staunchly opposed to such joint financing of eurozone debt. They are fearful that their low borrowing costs would increase sharply if they also were responsible for financing debt-ridden Greece, Italy, Spain and other financially troubled countries.

A senior German official told reporters in Berlin that eurobonds "cannot be part of a growth package."

Austrian Finance Minister Maria Fekter called Hollande's approach "nonsense." She described economic growth financed by more debt "a recipe from the day before yesterday."

 

Some information for this report was provided by AP.

You May Like

Obama: I Will Do 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Christmas Gains Popularity in Vietnam

Increasingly wealthy Vietnamese embrace holiday due to its non-religious glamor, commercial appeal More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid