Christine Lagarde: The world economy is in danger

by arifsadik

During a visit which took place in Nigeria and Niger last week, Christine Lagarde had said once the global economy was “at a crossroads pericuolasa”. She believes that the euro area countries attract the rest of the world into a financial and economic crisis and social unrest that might ensue.

“The global economy is in a dangerous situation,” Christine Lagarde warned in an interview with the Sunday newspaper Journal du Dimanche.

Old continent is sinking into recession, global trade and production slows, and the financial crisis extends into a “crisis of confidence in government debt and financial system soundness.”

America, the main partner of Europe, is affected. And emerging as motors of growth in 2000, but now blocked, is the picture presented by Lagarde, evoking China, Brazil, Russia, “where growth forecasts are revised down”.

In late January, the IMF will publish its global economic forecasts. 4% growth globally in 2012, could be revised, says Lagarde.

It noted that talks between Nicolas Sarkozy, Angela Merkel and their counterparts have not yet stopped the crisis.

“Summit of December 9 was not detailed enough about financial matters and was too complicated in terms of fundamental principles. Heads of State have provided a change in EU treaties, each country to engage in the rules of good management “.

Christine Lagarde says: “There has been considerable progress in Europe, but they are gradual and poorly understood. Have accelerated implementation of measures”.

“It would be useful for Europeans to speak with one voice and to announce a plan and a simple calendar and detailed”, specified Lagarde, noting also that it expects large investors and the principles do not impress.

National selfishness increasingly more pronounced is, in its view, the main obstacle. “It’s hard to put in place strategies against international coalition crisis. National parliaments are not willing to commit public finances or to validate a state guarantee to support other countries. Protectionism is the subject of debate, and the principle of every man for himself gaining ground” .

Lagarde does not cite the name of any country, but being about protectionism, China is addressed.