Crisis: EU can slow down on fiscal rigor, Olli Rehn says

Time for growth in Europe, says senior IMF official

25 April, 16:31

    Olli Rehn, Vice President for the European Commission Olli Rehn, Vice President for the European Commission

    (ANSAmed) - BRUSSELS - EU member states can begin to relax their fiscally rigorous policies in 2013, Economic Affairs Commissioner Olli Rehn told a conference here on Thursday. ''Consolidation slowdown is now possible thanks to the efforts made by troubled countries, by the ECB and by credible budget policies'', said Rehn.
    ''Consolidation efforts must consider specific country situations, therefore the budget balancing dynamic is changing.
    There is now room to maneuver with less aggressive measures.
    This was not possible in 2012, when countries had to regain credibility and make their accounts sustainable''.
     

    European politicians must back away from austerity measures and find lasting policies that will boost economic growth, a top official with the International Monetary Fund said Thursday. "There is ... a risk that Europe could fall into stagnation, which would have very serious implications for households, companies, banks and other institutions," David Lipton, first deputy managing director with the IMF, said in a speech in London.

    He praised "important steps" taken by leaders to cope with the crisis and urged further reforms to enable Europe to "put the crisis in the rear-view mirror and finally return to growth and the creation of jobs". Otherwise, Europe will lag behind the United States and powerhouse emerging economies, Lipton warned. (ANSAmed).

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