IMF urges delaying austerity in troubled economies
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The International Monetary Fund has urged Europe to ease on its programme of austerity and give the likes of Spain and Greece more time to sort out their debts.
At the IMF conference in Tokyo, managing director Christine Lagarde said that austerity was causing deep economic wounds in Europe's troubled southern periphery. "It is sometimes better to have a bit more time," she said. "That is what we advocated for Portugal; this is what we advocated for Spain; and this is what we are advocating for Greece."
Ms Lagarde's comments sparked anger from the German Finance Minister, Wolfgang Schäuble, who responded that: "When there is a certain medium-term goal, it doesn't build confidence when one starts by going in a different direction."
Earlier the IMF published research suggesting that austerity was having a more damaging effect than first thought.
The intervention of the IMF will also be a blow to George Osborne, the Chancellor, who has to date lauded the IMF's approval for Britain's austerity.
Meanwhile, Spanish government debt was downgraded to within a notch of junk status by the rating agency S&P, and the price of three-year Italian bonds rose to their highest level for a month.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments