International Monetary Fund
(IMF) chief Christine Lagarde said Monday that the current
austerity policy in the euro area is not "excessive".
In an interview published in Les Echos, a French business
daily newspaper, Lagarde said that European nations must also
continue to cut public spending.
"You cannot talk about excessive austerity policy in the
euro area...we must keep the pace in the reduction of public
spending," she said in the interview.
Structural reforms are also important, and low inflation is
no excuse to delay change, she said
"Even if inflation is weaker than usual, it cannot be used
as a screen to put off the necessary efforts on spending,"
Lagarde said.
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