Reuters) – The International Monetary Fund on Monday cut its forecast for global economic growth and warned that the outlook could dim further if policymakers in Europe do not act with enough force and speed to quell their region’s debt crisis.
In a mid-year health check of the world economy, the IMF said emerging market nations, long a global bright spot, were now being dragged down by Europe. It said a [...]
“If the country’s budgetary commitments are not honoured, there are appropriate revisions to do, which means either supplementary financing and additional time or mechanisms for an exit, which in this case must be an orderly exit,” Christine Lagarde said in an interview with France 24.
Meanwhile, debt-stricken Greece must hold fresh elections after talks on forming a new government broke up today without agreement.
The new polls, expected on June 17, follow [...]
from Bruce Krasting’s blog
There will be some drama, and few splashy headlines out of the G-20 meeting in D.C. this weekend. Europe is cracking up (again), and the IMF and big guns of the G-20 will spout about “expanded firewalls” and “global co-ordination” in the final communique Sunday evening. If we don’t get a big dose of “happy talk” then the markets will crap out.
A big agenda item for the weekend is the $400b [...]
The Irish legislature approves the EU/IMF bailout by a vote of 81-75. An opposition party spokesman calls for the “outright obscenity” of a deal to be renegotiated, an idea dismissed by Finance Minister Lenihan as “laughable.”
Watch proceedings from the DÃ¡il
Minister for Finance Brian Lenihan said that it was not envisaged that the country will need the extra year to reach a deficit 3% of GDP, as [...]