IMF head pledges support for Greece

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IMF head pledges support for Greece

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There are tough times ahead as Greece embarks on its unprecedented belt-tightening plan.

But Prime Minister George Papandreou knows he has the backing of the EU and IMF.

Speaking to Euronews, IMF head Dominique Strauss-Kahn voiced his support:

“The Greek government was very bold, courageous, brave in taking these measures, very difficult measures. And they have to do it, that was the only way to save the people, but they did it. So I’m not saying it will not be painful, it will be painful, but I think it will work and at the end Greece will come back on track and have normal growth with income for the people, growing again with unemployment going down. It is not going to happen overnight, it’s going to take time, that’s why it’s painful, but there is no other way to go.”

The crisis has shown that while there may be a single currency, this is not backed by a single economic policy, said Strauss-Kahn:

“There is a single currency, but there is not the economic environment which makes a single currency viable when you have a crisis and that is what we are seeing now. I expect that the Europeans will take advantage of this crisis to really reshape and revamp the European institutions.”

Meanwhile, Germany’s ambassador to France has poured scorn on reports that Nicolas Sarkozy threatened to pull France out of the euro if Germany did not agree to help Greece during mammoth talks in Brussels last week.

The EU and IMF eventually agreed a 110 billion euro rescue package for Greece.