IMF chief urges effective crisis-prevention measuresWednesday, December 8, 2010
IMF chief: European situation remains troubling
International Monetary Fund chief Dominique Strauss-Kahn said the situation in Europe remained troubling, and kept up pressure for more effective measures to deal with the euro zone debt crisis.
In a speech in Geneva, the IMF managing director warned that the effects of the global financial crisis were far from over.
"The situation in Europe remains troubling and the future is more uncertain than ever," he said.
Strauss-Kahn said the Greek and Irish debt crises highlighted the need for more effective measures to deal with economic and financial storms.
"The delay in strengthening supervision and creating effective crisis resolution mechanisms could well lead to the next crisis," Strauss-Kahn cautioned.
The speech comes a day after the IMF chief criticized the euro zone for a disjointed response to the debt crisis.
"The euro zone has to provide a comprehensive solution to this problem. The piecemeal approach, one country after another, is not a good one," he said during a visit to Greece. A day earlier in Brussels, Strauss-Kahn called on the euro zone to commit more resources to quell the debt crisis.
In his speech in Geneva, he called for stronger economic and financial oversight noting that countries would have strong rules but without proper supervision "disaster could be just around the corner."
He said reforming banking sector regulations was urgent and necessary and authorities across the globe were not moving fast enough to fix the shortcomings.
"It is important to apply new rules to the financial sector," Strauss-Kahn said. "We need supervision that is not afraid of saying no to powerful interests."