European governments “must consider the impact of their fiscal policies on growth”. From Paris, the number one of the IMF Christine Lagarde rejects Merkel's cure applied to Europe across the board. "The recovery must be carried out with determination and credibility - he says - but at the same time its pace must be reasonable, so as not to depress assets excessively and support demand in the short term".
As for the banking union in the eurozone, it remains "a priority", "a beautiful declaration is not enough, but a clear proof of European solidarity is needed". Speaking at a French Treasury conference Lagarde calls on the eurozone to adopt "asymmetric" economic policies when necessary, with the countries in surplus which, through the increase in real incomes, must support the growth of those in deficit.
Because, added Lagarde, “the economic situation in the euro area remains fragile”, despite the "strong" political responses at national and European level which have helped to "calm down the markets". Hence the economic policy recommendation: "Governments must be attentive to the impact of budgetary policies on growth, the measures must be anchored to the medium-long term and the pace of the measures must be reasonable so as not to depress activity in a excessive".
