The IMF “is likely going to have to play a more active role in supporting the European efforts,” he said. “A bit of ingenuity and creativity may be needed because the IMF remains well-positioned to play a supportive role.”
The Washington-based IMF could coordinate a fund to help countries provide job training to reduce unemployment, Dallara said.
In a letter to leaders attending the Group of 20 summit in Los Cabos, Mexico, on June 18-19, the IIF also suggested that the IMF should take into consideration the negative state of the economy in Greece and other countries when setting fiscal targets. "In an environment of severe economic contraction, the pace of short-term budgetary adjustment needs continuous examination for potential easing,» the IIF said. Dallara said last week that he plans to step down as managing director this year.
[Kathimerini English Edition & Bloomberg]