Markets might be too optimistic on the euro zone’s prospects, according to the Christine Lagarde, the managing director of the International Monetary Fund (IMF), who has warned that large amounts of debt, unemployment and low inflation could hit growth in the region.
Speaking at an event in the Robert Schuman Foundation in Paris, she said that Europe continues to face important challenges concerning its long-term future and markets might be at risk of being too complacent.
“The good news is that the European economy is recovering from the crisis. Confidence is improving and financial markets are upbeat. Perhaps too upbeat,” she said.