Christine Lagarde believes Germany can help the euro zone

IMF chief believes that the more Germany can do to help the euro zone, the better

Christine Lagarde, Managing Director of the International Monetary Fund (IMF), stated her confidence in the Group of 20 achieving its target of boosting global growth by 2% in time for the November summit in Brisbane, Australia.

She believes that Germany can help the global economy. Specifically, she said:

“A country like Germany definitely has a surplus and is balancing its budget. It is committing to invest in infrastructure, which clearly is needed, and there is slack in the economy that will allow that and will help the euro zone. Now, the more they can do, the better, but equally they have to be mindful of the equilibrium they must have in their domestic market.”

“We’ll likely see a mixed bag of reforms and policy that will be more neutral for some countries and more accommodating for others,” she said. “But it’s going to be on the per-country basis, not across the board.”
Her comments come at a time when debate for economic recovery is on.