THEEurope will enter a "negative spiral of collapsing trust” if they are not taken soon new measures. This was said by David Lipton, first deputy managing director of the IMF, who asked the interruption of restrictive monetary policies in countries where inflation has eased.
“Without interventions – added Lipton from the Fifth Asian Financial Forum in Hong Kong -, Europe” risks “a stagnant growth and declining employment“. But all is not lost: "With significant measures and with international support, it is possible to avoid a new phase of the crisis".
Lipton later argued that Asia should play a bigger role in the IMF. The deputy director general of the Washington institution also mentioned Italy, emphasizing that it is making serious efforts to convince the international panorama of the sustainability of its public finances.
