Lagarde: Greece does not assume its responsibilities

She admitted that IMF has made a mistake with fiscal multipliers

“Greece cannot just continuously tag along and expect that things will be sorted out. The Greek leaders will need to take more ownership of reestablishing their country” stressed the head of the International Monetary Fund, Christine Lagarde, in an interview with Bloomberg.

Asked on whether she expects Greece to stay in the EU, she responded: “Yes, I think so. We’re not out of the Greek situation yet. And I think the present circumstances with the migration and the refugees are going to strengthen the critical role Greece is playing in the EU”.

However, Mrs. Lagarde admitted that IMF has made a mistake with fiscal multipliers saying:”We have acknowledged one mistake, which had to do with the fiscal multipliers where we—all of us, the IMF, Europeans, the ECB [European Central Bank]—underestimated the contracting impact of some of the measures that we recommended. We overestimated the ability of Greece to actually endorse and take ownership of measures that were needed, because we moved from one government to another to another to another, and it was always, “It’s not really our program, it’s not really our reforms, it’s not really our measures. It’s imposed by the Troika putting all members in the same bag.” So I think that was overestimated.”

Click here to read the full article.