November 19, 2011
The International Monetary Fund is inserting itself more forcefully into Europe’s efforts to resolve its debt crisis, hoping to stem a contagion that is spreading worldwide and threatening global growth.
Uncertainty is turning into frustration and near-panic among policymakers outside Europe as larger European economies such as Italy, Spain and France come under attack by financial markets and bank funding stresses worsen.
Until now, Europe has tried to navigate its way out of the two-year crisis on its own and the IMF has worked as a partner in a rescue “Troika” alongside the European Commission and European Central Bank in bailing out debt-stricken Greece.
But patience, both among officials outside of Europe and in markets, is running thin with what many view as Europe’s painfully slow decision-making process.