The Director General of the International Monetary Fund, Christine Lagarde believes that eurozone states should have a "larger firewall" to deal with the crisis, as well as "joint bonds" to "convince the markets of the sustainability" of the single currency.
Addressing the German Council on Foreign Relations audience in Berlin, Lagarde explained that without a more robust firewall "Countries like Italy and Spain, which have the fundamentals to pay off their debts, could be forced into insolvency by abnormal interest rates.
Warning against a crisis that “is likely to engulf the whole world”Lagarde says the IMF needs "up to $500 billion in additional lending resources."
