IMF chief urges EU use rescue money for growth

AFP on Yahoo ^ | 5/26/10 | AFP

[NormsRevenge]

BRASILIA (AFP) – IMF chief Dominique Strauss-Kahn urged EU countries to coordinate their national crisis recovery plans, notably by using part of a one-trillion-dollar EU-IMF stabilization fund to boost growth.

"Part of this money should be used to boost growth, because without growth prospects in the eurozone and European countries it will be difficult to get out of the crisis," he told reporters during a visit to Brasilia.

The fund he was referring to is a 750-billion-euro (one trillion dollar) rescue package put together earlier this month in a bid to prop up the euro after markets took fright at Greece's parlous finances.

Although the fund was meant to serve as a credit guarantee for weak eurozone economies, Strauss-Kahn's suggestion would broaden its scope, based on his view that belt-tightening now being implemented in Europe needed to be accompanied by measures reinforcing growth.

"What has been done in the fiscal side was needed, it is painful for the countries, it had to be done. But at the same time, solidarity in the eurozone might express itself not only by rescuing countries when they have problems, but also boosting growth," he said.

There is a need for "growth to be higher, which is the only real way in the medium term to solve the fiscal problems," he said.

The head of the International Monetary Fund also said he did not see the US dollar being replaced as the main international currency in the world financial system.

[NormsRevenge]

.. or they could take some of that dough and buy armor-plated limos and beef up their estates security and staff..

What a load of pattootie.. Regulate the piss out of something and that’s what you get in the end..

Isn’t standard rule of thumb,, 1/3rd is gone off the top, thus leaving a measly 600 plus billion to get their houses in order.