IMF Europe crisis role may not be 'visible': Lagarde

SAO PAULO Fri Dec 2, 2011 8:51pm IST

International Monetary Fund Managing Director Christine Lagarde gestures during a news conference in Brasilia December 1, 2011. REUTERS/Ueslei Marcelino

International Monetary Fund Managing Director Christine Lagarde gestures during a news conference in Brasilia December 1, 2011.

Credit: Reuters/Ueslei Marcelino

Related Topics

SAO PAULO (Reuters) - The International Monetary Fund is happy to play a behind the scenes role in resolving the European debt crisis, which needs to be tackled with fiscal consolidation and structural reforms, the lender's chief Christine Lagarde said on Friday.

Lagarde, in Brazil for the last leg of a Latin American visit to drum up support for more global cooperation, said the risk of contagion from the crisis had materialized.

"I'm very happy if the IMF is in the middle of it, but in an effective way, not necessarily a visible way," Lagarde said in the recording of a Globo News TV news show in Sao Paulo.

Lagarde urged euro zone countries to find a collective, comprehensive solution to the crisis or risk enduring a lost decade.

European leaders are scrambling for a definitive end to a spreading debt crisis that is dragging down global growth and could even spell the end of the 17-nation euro zone.

The crisis has boosted the role of emerging economies on the world stage, but could also prompt some to take protectionist measures, Lagarde said.

Lagarde commended Brazil's economic management and policies, which she says had left the country better prepared than many to weather potential contagion from the euro zone debt crisis.

Brazil and other major emerging countries have said they are willing to boost the IMF's war chest to help solve a crisis in Europe that is threatening their own growth.

After red-hot growth in 2010 Brazil's economy is now slowing more than expected, prompting the government to issue a flurry of measures to boost consumption and lending.

Other emerging markets are expected to move ahead with stimulus measures to shore up their economies hurting from a drop in global lending and trade.

(Reporting by Todd Benson; Writing by Alonso Soto, editing by W Simon )

FILED UNDER:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage