International Monetary Fund
AGENCIES the IMF warning before G-20 that austerity in Europe may be unsustainable. It has warned it may be politically and socially unsustainable and recommended a gradual adjustment because the reforms will take years to complete. The international agency stressed the revision downward of the forecast of world growth: 3.3% for 2012 and 3.6% 2013. The International Monetary Fund (IMF) has urged the countries which are under pressure from the markets and finance costs elevated that they request the help of the rescue funds to activate so the debt purchase programme launched by the European Central Bank (ECB), according to the report of the Fund submitted to the G-20 ministers gathered last weekend in Mexico and released Thursday. Access to financing at reasonable costs is essential to allow a successful adjustment, explains the IMF on Europe, which appreciates the steps taken recently by the Central Bank (ECB) European.
Stresses, Furthermore, the lowering of debt risk premiums sovereign in Spain and Italy, although they remain, says, at high levels. Countries under pressure should implement adjustment plans and, if necessary, request the appropriate of the EFSF support / ESM. This would allow the ECB to intervene using the UNWTO programme established recently, said the Monetary Fund International which has warned Thursday before the G-20 of the risk that excessive austerity is politically and socially unsustainable in the European periphery and recommended a gradual adjustment. Another risk is that austerity can be politically and socially unsustainable countries on the European periphery, since fiscal and structural reforms will take years to complete. Therefore, it recommends that fiscal consolidation in advanced economies must develop in a sustained manner and gradual, while the central banks should be prepared to do more if necessary. Revises downward the growth world international agency underscored the downward revision of forecasts of world growth at its meeting in October in Tokyo, in which projected a modest expansion of 3.3% for 2012 and 3.6% 2013. It was also recalled that the only G-20 economies will grow at a pace of 1.6 percent this year and next.
In Europe, he acknowledged that progress had been made, but he argued that the eurozone crisis resolution will require timely and determined by part application the European authorities of the roadmap to fiscal and banking union. On the other hand, it warned about the threat imminent from the fiscal precipice in United States, a sharp combination of spending cuts and rising tax planned for 2013, which could have global implications. According to the Fund, this acute fiscal consolidation, about 4.5% of American GDP in 2013, would push the country into a recession with great potential for international spread. Not implement measures that avoid the worst scenarios in Europe and USA.UU., the Fund noted that the world could return to a new slowdown, with a deep recession in the periphery of the eurozone and a contraction or stagnation in the kernel and other advanced economies. See more: the IMF warning of an “unsustainable” austerity and urges the countries in trouble to the ransom
