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."
The Microsoft mogul told fans a few home truths during his Reddit AMA
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Ball pool for adults opens in London
- 4 Baldness could soon be treated using stem cells, scientists hope
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Teenager brandishing fake gun taken down by police after demanding airtime on Netherlands' NOS TV station
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...