Sinking European Economies threat to the World Economy

JNN 19 Dec 2011 Nairobi : The International Monetary Fund (IMF) chief Christine Lagarde has warned that the European debt crisis is a risk for “all economies of the world”.

“What is happening in advanced economies, particularly in Europe, is obviously of concern for everybody around the world at the moment,” Lagarde said during her first visit of Africa as head of the fund.

“Because the severity of the crisis and the difficulty that the Europeans have in dealing with the crisis will have a ripple effect in all economies of the world,” she added.

In her visit of Nigeria, Lagarde held talks with President Goodluck Jonathan after meeting Finance Minister Ngozi Okonjo-Iweala, a former World Bank managing director.

Lagarde said she is impressed with economic reform plans being pursued by the government in Nigeria, Africa’s largest oil producer and the continent’s most populous nation.

Meanwhile, European Union finance ministers have yet failed to meet a self-imposed deadline, which expires on Monday midnight, to raise cash for new eurozone bailout funding.

At a European summit on December 9, all EU nations except Britain agreed to introduce tougher budget rules to save the eurozone and to give up to 200 billion euros in bilateral loans to the International Monetary Fund to help tackle the crisis.

However, Germany’s hopes for a treaty revision were dashed when Britain’s Prime Minister David Cameron opt out of the plan by using his veto, saying he could not get the protection he wanted for the London’s financial centre.

Europe plunged into a financial crisis in early 2010. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland and Spain


0 thoughts on “Sinking European Economies threat to the World Economy

  1. Pingback: Banks World wide getting ready for Euro collapse « Jafria News

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