In her first major economic speech as the head of the International Monetary Fund, Christine Lagarde says global growth is slowing and bold action is needed, meanwhile she remains confident Greece will stay in the euro zone.
Speaking ahead of the International Monetary Fund and World Bank meetings this weekend, IMF Chief Christine Lagarde, urged bold action to break the vicious cycle of weak growth and high debt- that she says has been made worse by policy indecision and political dysfunction. SOUNDBITE: CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "Overall growth is continuing to slow down. The advanced economies in particular are facing an anemic and bumpy recovery with unacceptably high levels of unemployment. The euro area debt crisis has worsened. Financial strains are rising and again without collective bold action there is a real risk that the major economies slip back instead of moving forward." Regarding Greece, Lagarde said the financially troubled country must deliver on its commitments and expressed confidence they would remain in the euro zone. SOUNDBITE: CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "I was personally very much reassured by the joint statement of Chancellor Merkel and President Sarkozy yesterday. It's a clear indication from them, who are the two you know clear leaders from an economic point of view in that euro zone of 17 members, that the future of Greece is within the euro zone that seems to be very strongly entrenched as a view from both of them." Lagarde said euro zone leaders had to address their financing problems, and ensure all banks are properly capitalized- and admitted politics overwhelmed economics. SOUNDBITE: CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND (ENGLISH) SAYING: "It has been a slow process which was directionally right but which was too slow and generally a little bit behind the curve to impress on the market that the European players in this monetary zone were prepared to actually shoulder pain together." When it comes to the U.S., Lagarde welcomed President Barack Obama's jobs proposal, but urged policymakers around the world to do more to spur significant job creation. Bobbi Rebell, Reuters.