IMF chief warns of social unrest in Europe
Wednesday 27 July 2011
The new head of the International Monetary Fund warned European leaders of the possibility of social instability as a result of the eurozone's economic problems.
Speaking in New York, where she is now based, Christine Lagarde, the former French finance minister, said that the recent economic turbulence which has seen Greece, Portugal and Ireland suffer debt crises – and the spectre hang over Italy and Spain – could "easily resurface" despite the lift in the markets after last week's €109bn (£96bn) bailout package for Greece.
Referring to the political upheaval in North Africa and the Middle East earlier this year, she said: "Social problems are of major concern to advanced economies, too. The young in particular are having a hard time finding work – with potentially lifelong implications in terms of employability and income. At the same time, the older generations are fighting to protect their health and pension benefits. Combine the two and we may face a 'clash of generations'."
She did praise European political leaders for their recent action and said that arguing Republicans and Democrats in Washington needed to follow their example and reach agreement, or the global economy would suffer.
"I'm hopeful that the political courage shown by European leaders will soon be followed by bold fiscal action in the US," she said. "The clock is really ticking. And people have to really find the appropriate solution." American policymakers have a deadline of 2 August before the US defaults on its debt.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Germany sees 'visible rise' in support for far-right extremism in response to perceived 'Islamisation' of the West
iJobs Money & Business
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...