The IMF and Civil Society
Highlights from the World Economic Forum in Davos
January 30, 2012
No country is immune from the current crisis, says IMF Managing Director Lagarde.
Rapidly restoring confidence in both Europe and globally is crucial to protecting the battered international financing system and rebuilding the ailing recovery, threatened particularly by strains within the euro zone, panelists at a discussion on the global economic outlook said in Davos.
“No one is immune in the current situation. It’s not just a euro zone crisis. It’s a crisis that could have collateral effects, spillover effects around the world,” IMF Managing Director Christine Lagarde told a panel discussion at the World Economic Forum.
To get beyond the crisis, she said Europe must address three key issues—lack of growth, reduced competitiveness, and the need for greater integration. To restore confidence more immediately, the euro zone must develop a strong firewall to protect its members.
“It is critical that the euro zone members actually develop a clear, simple, firewall that can operate both to limit the contagion and to provide this sort of act of trust in the euro zone so that the financing needs of that zone can actually be met."