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Lagarde calls for decisive action to halt euro slide

September 25, 2012 euronews
The Head of the International Monetary Fund Christine Lagarde has called on political leaders to take the initiative offered by recent policy changes to bring the global economic crisis under control.

Speaking at the Peterson Institute for International Economics in Washington, she said policy uncertainty is hurting growth:

“This time, we need a sustained rebound, not a bounce. If this time is to be different, we need certainty, not uncertainty. We need decision makers to be real action takers. We need delivery. Europe remains the epicentre of the crisis and where the most urgent action is needed,” she said.

Lagarde said recent moves by the ECB to purchase bonds from weaker eurozone states signals a move in the right direction.

She also urged the United States to reach a deal on raising its debt ceiling, failure to do so could result in more global belt tightening what Lagarde calls a “fiscal cliff.”