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 What happens to your body when you give up sugar?
- 2 Japanese island overrun with cats after population explodes
- 3 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 Average penis size revealed: Scientists attempt to find what is 'normal' to reassure concerned men
California teacher appears to have hanged herself in her classroom
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
Bubonic plague-carrying fleas found on New York City rats
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...