June 22, 2012
The head of the International Monetary Fund has piled pressure on Germany by recommending a series of crisis-fighting measures that chancellor Angela Merkel has resisted.
IMF managing director Christine Lagarde warned that the euro is under “acute stress” and urged eurozone leaders to channel aid directly to struggling banks rather than via governments. She also called on the European Central Bank (ECB) to cut interest rates.
Her comments came as Italy’s prime minister, Mario Monti, warned of the apocalyptic consequences if next week’s summit of EU leaders were to fail.