Thursday

1st Sep 2016

IMF doubles its funds, warns Europe

  • Lagarde: 'Everybody wants to have a bigger share of the same pie' (Photo: alles-schumpf)

Finance ministers from emerging countries over the weekend joined Europe in doubling the coffers of the International Monetary Fund (IMF), while asking for a bigger say in its governance and warning the eurozone to speed up anti-crisis measures.

Chaired by Singapore's finance minister Tharman Shanmugaratnam, the IMF meeting on Saturday (21 April) concluded that "continued progress" in the eurozone is needed to lower the borrowing costs of governments and "secure financial stability."

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

"Undertaking bold structural reforms will be crucial to boosting confidence and productivity, facilitating rebalancing within the monetary union, and promoting strong and balanced growth," the final communique says.

For his part, US treasury secretary Timothy Geither noted that more action is needed from the European Central Bank (ECB).

"The success of the next phase of the crisis response will hinge on Europe's willingness and ability, together with the European Central Bank, to apply its tools ... aggressively to support countries as they implement reforms," he said.

The Frankfurt-based ECB has already poured €1 trillion worth of cheap loans into eurozone banks to prevent a credit crunch and to allow them to buy more government debt, a move which temporarily lowered Spain and Italy's borrowing costs.

IMF chief Christine Lagarde on Friday managed to raise €326 billion extra for her institution's general intervention budget. The money could be used for further euro-bail-outs.

The US and Canada declined to chip in. Meamwhile, in return for their - so far unspecified - extra contributions, Brazil, China, India and Russia want a bigger say in the way the IMF takes its decisions.

Brazil's finance minister Guido Mantega pointed out that even though his country could be described as the third largest economy in Europe behind Germany and France, its voting power at the IMF is equivalent to the Netherlands and smaller than Spain, Italy or Britain.

The UK also said that its €11 billion contribution will only become available once IMF reforms are completed.

"I take reforms one step at a time," Lagarde told reporters on Saturday. "Everybody wants to have a bigger share of the same pie, so there will have to be give and take."

Stakeholders' Highlights

  1. EBECBright Engineering Students Designed the Future, Today at the BEST Competition
  2. Access NowInternet wins! Net Neutrality Victory in EU
  3. EuridThe 2016 .eu Web Awards is a Chance to Make Dreams Come True so Vote Today !
  4. Nordic CouncilNordic-Baltic Co-operation Vital in Turbulent Times
  5. GoogleBrussels: Home of Beer, Fries, Chocolate and Google’s Policy Team - follow @GoogleBrussels
  6. HuaweiSeeds for the Future Programme to Bring Students to China for ICT Training
  7. EFASpain is Not a Democratic State. EFA Expresses Solidarity to A. Otegi and EH Bildu
  8. UNICEFBoko Haram Violence in Lake Chad Region Leaves Children Displaced and Trapped
  9. HuaweiMaking Cities Smarter and Safer
  10. GoogleHow Google Makes Connections More Secure For Users
  11. EGBAThe EU Court of Justice Applies Proportionality in Assessing Gambling Laws
  12. World VisionThe EU and Member States Must Not Use Overseas Aid for Promoting EU Interests

Latest News

  1. Verheugen went off-script in VW cheat testimony
  2. Poland may remove constitutional judges
  3. Spain's Rajoy faces uphill battle to win MPs' support
  4. Russia and Turkey restart talks on EU gas pipeline
  5. MEPs call for reconciliation with Turkey
  6. Egypt blames EU-Turkey deal for refugee spike
  7. EU dithering aggravated refugee crisis, Merkel says
  8. Verheugen did not think VW cheating was morally possible