May 23, 2013
Davos: Lagarde expresses worries over eurozone crisis
"Big worries" remain about what the euro zone will do going forward and the United States and Japan also need to demonstrate a medium-term commitment to reducing debt, International Monetary Fund chief Christine Lagarde said.
"Members of the euro zone are going to do a special effort because that is where the centre of the crisis (is)," Lagarde said at the World Economic Forum in Davos, Switzerland.
"There is a combination of worries about the banking sectors around the world, big worries about what the euro zone will do going forward and how they will bring together all the forces that they need to produce what they call the fiscal compact, new government rules, a firewall, which is what I certainly advocate."
"Look at US and Japan, they have to do something as well. They have to really demonstrate that they have a medium-term objective which is to reduce their debt, reduce their deficit and run their public affairs on a much more sustainable and balanced basis," she added.
"You cannot forever borrow to create growth," she said.