22/06/2012 12:35
Lagarde called on EU countries to save euro
According to Reuters, the International Monetary Fund urged the euro zone on Thursday to channel aid directly to struggling banks rather than via governments and called for the European Central Bank to cut interest rates, saying the future of the euro was at stake.
The stark message from IMF Managing Director Christine Lagarde, delivered to euro zone finance ministers who met in Luxembourg, will increase pressure to forge a unified approach to tackling problems at struggling banks such as those in Spain, the source says.
Lagarde spelled out a plan that envisioned the issuance of jointly guaranteed euro zone debt as well as more centralised economic control in the 17 countries that use the euro.
As ministers prepared to provide up to 100 billion euros ($126 billion) in aid for Spain to shore up its stricken banks, Lagarde said financial support for banks should be given directly, rather than via the state.