Be flexible on euro deficit rules, says IMF
Distressed eurozone countries need more time to hit their deficit reduction targets, the International Monetary Fund warned yesterday.
Speaking at a conference in Brussels, the IMF's deputy managing director, Nemat Shafik, said that Spain and others need a more relaxed timetable to cut their deficits to3 per cent of GDP, as mandated by European Union fiscal rules.
"In a few euro area countries... the nominal fiscal targets for 2012 agreed before the current slowdown in growth may prove too pro-cyclical and may need to be adjusted or at least expressed in structural terms," she said.
This seems to be in tune with the thinking of some European policymakers. Earlier this week the European economic affairs commissioner, Olli Rehn, said that Spain could be given an extra year (2014 rather than 2013) to bring down its deficit to 3 per cent of GDP.
Ms Shafik also said that the European Central Bank could do more to support growth. "With price pressures expected to decline, this means the European Central Bank could consider further expansionary measures to prevent aggregate inflation slipping far below the target of keeping inflation at or below 2 per cent."
- 1 Malaysian cyclist could face disciplinary action after 'Save Gaza' gloves protest
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Comic Con 2014 attendees
Students offered grants if they tweet pro-Israeli propaganda
McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...