General manager International Monetary Fund (IMF), Kristalina GeorgievaHe called on the governments of Spain, France and Italy, where debt and budget deficit levels have risen significantly, to take action. “Buckle up now” and apply budget adjustmentsIncluding the end of measures to alleviate the rising cost of living.
“Now they need to buckle up and start making budget adjustments,” the Bulgarian economist insists in an interview with the newspaper ‘El Mundo’, where he gives advice to all developed economies of Europe.most important tax adjustments“.
Georgieva reminds that in the case of the three countries mentioned, they saw their debt/GDP ratios rise significantly following their “appropriately strong” fiscal response to Covid. an increase in levels debt and at the same time shortcomings.
However, the IMF President stated that there are differences between the three economies and stated the following: In the case of Spain, confidence that the projected 0.3% correction in the budget deficit can be reducedbut “unless Spain renews its aid measures, which are expected to expire at the end of this year”.
Georgieva points out that at the European level, unlike the US, which is recovering to its pre-pandemic trend: Eurozone still 2% below pre-pandemic trenda, “and growth is very modest.”
In this sense, considering that its influence in the EU is greater war in ukraine The Bulgarian economist emphasizes that in the face of demographic challenges through the energy channel and towards extremely fair labor markets for staff, “Europe needs determination to carry out structural reforms that will reactivate growth.”
“I think it’s time for managers to do the right thing: more courage, more strength in leadership, because tough times are coming and we have to do what’s necessary, even if it’s unpopular,” he argues.