IMF Pressures Europe and the United States because of the Capitalist Crisis

Published in Correio do Brasil
(Brazil) on 28 August 2011
by Redação (link to originallink to original)
Translated from by Deonca Williams. Edited by Andrew Schmidt.
"Developments this summer have indicated we are in a dangerous new phase,” warned Christine Lagarde, the new president of the International Monetary Fund during a conference. "The stakes are clear; we risk seeing the fragile recovery derailed. So we must act now."

The alert is due to the fact that two years after the end of the global financial crisis, growth in the United States and Europe is weak. And the debt crisis in both Europe and the United States has shaken the public’s confidence in a global economic recovery.

Obama and Merkel

The economic powers need to develop long-term plans, as well as keep their debts under control, added Lagarde. At the same time, they should not apply methods of austerity that are too drastic, because in this way they will be risking their own recoveries. Lagarde urged central banks to keep interest rates low and to consider non-conventional methods, if necessary, to defeat the crisis.

U.S. President Barack Obama and German Chancellor Angela Merkel are currently engaged in discussions regarding the recent market turmoil and the European debt crisis. According to the White House, the two spoke over the phone concerning joint measures to be taken to defeat the economic crisis. Obama and Merkel are in agreement about the urgent need for renewed economic growth worldwide as well as the creation of jobs.

Lean cows?

According to estimations from German Minister of Finance Wolfgang Schauble, the global economy may suffer the consequences of austerity methods in some countries. Until the consolidation of the budget actually takes place in some countries, everything could be delayed a few years, explained Schauble.

In addition, the minister called for close cooperation regarding economic policy in Europe in order to ensure long term growth. According to him, immediate structural reforms as well as the rapid consolidation of the budget in indebted countries such as Italy, Spain, Portugal and Greece are extremely important.


“Os acontecimentos recentes mostraram que nos encontramos em uma nova fase perigosa. Corremos o risco de que essa recuperação frágil venha se estagnar novamente. Por isso precisamos agir”, alertou Christine Lagarde, nova presidente do Fundo Monetário Internacional (FMI), em um comunicado.

O alerta tem suas razões no fato de que, dois anos após o fim da crise financeira global, o crescimento dos EUA e da Europa é fraco. E a crise de endividamento tanto na Europa quanto nos EUA abalaram a confiança pública em um reaquecimento econômico global.

Obama e Merkel

As potências econômicas precisam alinhavar planos de longo prazo, a fim de manter suas dívidas sob controle, acrescentou Lagarde. Ao mesmo tempo, elas não deveriam aplicar medidas de austeridade drásticas demais, pois, desta forma, estarão colocando em risco a própria recuperação. Os bancos centrais conclamaram Lagarde a manter as taxas de juros baixas e, caso necessário, a pensar sobre “passou não convencionais” para contornar a crise.

O presidente norte-americano Barack Obama e a premiê alemã Angela Merkel discutem no momento a respeito das recentes turbulências nos mercados financeiros e sobre a crise europeia de endividamento. Os dois conversaram pelo telefone sobre medidas conjuntas, a serem tomadas para vencer os desafios econômicos, segundo informou a Casa Branca em Washington. Obama e Merkel estão de acordo com a necessidade urgente de retomada do crescimento econômico em todo o mundo, bem como da criação de empregos.

Vacas magras?

De acordo com estimativas do ministro alemão das Finanças, Wolfgang Schäuble, a economia global poderá sofrer com os efeitos das medidas de austeridade em alguns países. Até que a consolidação do orçamento dê realmente frutos em diversos países, deverão transcorrer alguns anos, explicou Schäuble.

Além disso, o ministro defendeu uma cooperação estreita em termos de política econômica na Europa, a fim de assegurar o crescimento a longo prazo. Segundo ele, reformas estruturais imediatas, bem como a consolidação rápida dos orçamentos em países muito endividados, como a Itália, a Espanha, Portugal e a Grécia, são de extrema imprtância.
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