The International Monetary Fund must take decisive control of the eurozone crisis or risk a “global economic fire”, Andrew Tyrie, the chairman of the Commons Treasury Select Committee, has warned.
Mr Tyrie suggested a Greek exit from the single currency was likely and argued that because the European Commission and European Central Bank were not equipped to deal with the problems in Spain and a further escalation of the crisis, the IMF must take charge.
He said the IMF was “the only global economic fire brigade we have”. “Only the IMF has the necessary detachment and economic credibility to help sort out this crisis…
These will be testing times for [IMF head] Christine Lagarde – her credibility, as well as that of the IMF, is on the line… "At the moment the IMF is treating the ECB and the Commission as partners in discussions.
This should end. Both European bodies have an existential conflict of interest.” He made the comments in a paper published today by the Centre for Policy Studies, in which he argues that policymakers should take advantage of the “breathing space” afforded by the Greek bailout to develop a plan for the ailing country’s exit.
Mr Tyrie said the IMF’s judgment that such a plan was credible would carry weight with financial markets, and suggested the IMF’s non-European members should also speak up, instructing the IMF to take a detached view.
“There is a non-negligible risk of a serious regional and a possibly global economic fire. The eurozone crisis has the capacity to engulf us all. In that sense, we are all in this together,” he said.
telegraph.co.uk
Mr Tyrie suggested a Greek exit from the single currency was likely and argued that because the European Commission and European Central Bank were not equipped to deal with the problems in Spain and a further escalation of the crisis, the IMF must take charge.
He said the IMF was “the only global economic fire brigade we have”. “Only the IMF has the necessary detachment and economic credibility to help sort out this crisis…
These will be testing times for [IMF head] Christine Lagarde – her credibility, as well as that of the IMF, is on the line… "At the moment the IMF is treating the ECB and the Commission as partners in discussions.
This should end. Both European bodies have an existential conflict of interest.” He made the comments in a paper published today by the Centre for Policy Studies, in which he argues that policymakers should take advantage of the “breathing space” afforded by the Greek bailout to develop a plan for the ailing country’s exit.
Mr Tyrie said the IMF’s judgment that such a plan was credible would carry weight with financial markets, and suggested the IMF’s non-European members should also speak up, instructing the IMF to take a detached view.
“There is a non-negligible risk of a serious regional and a possibly global economic fire. The eurozone crisis has the capacity to engulf us all. In that sense, we are all in this together,” he said.
telegraph.co.uk
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