IMF calls for action as euro crisis “festers”

The IMF has urged EU policymakers to deepen the financial and fiscal ties within the euro area with some urgency to restore sagging confidence in the global financial system.

The call came at the IMF/World Bank summit being held in Tokyo.

“If you were to ask me what we expect from this IMF annual meeting: we expect action and we expect courageous and cooperative action on the part of our members.” said Managing Director Christine Lagarde.

The IMF’s stark tone is in contrast to the mood in Europe, where an ECB decision to buy bonds of countries that accept an assistance programme has removed immediate concerns about the survival of the euro.

There was discord before the meeting even got underway. China’s top financial officials backed out of the meeting and sent deputies, due to an ongoing territorial dispute with Japan.

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