Geithner talks to Swiss President
IMF must press Europe on reforms
Washington, April 23, 2012
The International Monetary Fund (IMF), armed with a replenished arsenal containing billions of dollars to battle Europe's lingering debt crisis, now must press governments in the euro zone to carry out bold changes, said experts.
This move will help in reassuring the nervous financial markets and help avert sending the crisis into a more dangerous phase, they added.
The IMF's final communique after hours of high-level meetings did not go beyond saying what structural reforms were needed to restore fiscal health and spur economic growth in the 17 countries that use the euro.
But US Treasury Secretary Timothy Geithner told the IMF policy-setting panel that Europe needs to be more creative and aggressive in fighting its debt crisis, employing all the financial resources at its disposal, including the European Central Bank.
'The success of the next phase of the crisis response will hinge on Europe's willingness and ability to apply its tools and processes creatively, flexibly and aggressively to support countries as they implement reforms and stay ahead of the markets,' Geithner said.
German Finance Minister Wolfgang Schaeuble said the countries experiencing financial crisis in Europe are undertaking far-reaching reform measures.
'This includes labour markets, social security systems, public administrations and financial market institutions,' he said. 'This will allow countries to regain competitiveness and strong growth. It is the only way we will be able to restore confidence of our citizens and investors,' he added.