Christine Lagarde's Playbook For Europe

Image via Wikipedia

International Monetary Fund managing director Christine Lagarde had a tough act to follow in Jackson Hole, Wyo. Saturday, a day after the heavily-anticipated speech of Federal Reserve Chairman Ben Bernanke. The former French finance minister (and #9 on Forbes’ list of the World’s Most Powerful Women) did not disappoint.

Lagarde’s remarks included a three-step prescription to get control of Europe’s sovereign debt crisis,

U.S. Says IMF, World Bank 'Vital' to Address Global Challenges

The International Monetary Fund and World Bank are "vital for addressing the challenges of today and those that lie beyond the horizon," says U.S. Treasury Secretary Timothy Geithner, as the two world lenders convened in Washington for their annual spring meetings.

The organizations' "vital role in multiple and varied circumstances -- from fragile states to the global financial crisis; from security to climate change; and now to support historic transformations in the Middle East and North Africa -- underscore why these development banks are worthy of our strong support," Geithner said in a statement to the IMF and World Bank Group Development Committee Meeting April 16.

The committee released a communiqué after the meeting, which was held to discuss key global development issues, a main focus of the spring meetings.

IMF CONFIDE IN SUCCESS OF GREEK REFORMS

Image via Wikipedia

The IMF is confident that Greece will succeed in seeing through reforms in the context of sustainable debt. The latter assessment was issued by Antonio Borges, the IMF Europe Department chief. "We are convinced that Greece debt is sustainable - he said - and we are confident that the country will see through it tax reforms." . .

East Africa: Single Currency to Strengthen EAC Regional Economy

Image via Wikipedia

PROSPECTS are rife that the envisaged single currency would act as an East African Community language, improving communications around the bloc.
Financial analysts say the currency would purge the current problems of speculation, instability and uncertainty, providing a strong foundation for the growing EAC economy.
The currency is further expected to significantly reduce cost and risk of doing business, regionally.
Other impacts of the single currency include promoting regional economic justice, creating fairness between countries as well as protecting the poor - petty traders in the borders in particular against the impacts of currency fluctuations.

FT.com: Europe’s fiscal laggards must pay a premium

Image via Wikipedia

Europe again faces serious market uncertainty. The debate on crisis resolution initiated at last month’s meeting of national and European Union leaders in Brussels has unfortunately failed to restore confidence; instead, fears are growing over high debt and deficit levels in certain vulnerable states. Irish and Portuguese bond spreads have increased markedly in recent weeks and governments across the EU are watching nervously for signs of contagion.

What we now need is to create the conditions for stability with a long-term plan for EU crisis resolution. To restore credibility, the affected member states must take measures to front-load their consolidation efforts, making savings at the earliest possible opportunity.