IMF’s Lagarde Wants Germany to Play Bigger Role

International Monetary Fund (IMF) chief Christine Lagarde wanted Germany to play a bigger role in propelling economic recovery in Europe , she hinted in an interview broadcast yesterday, suggesting that German wages should rise.

Part of her remarks may be interpreted by personalities on the left of French politics as going in the same direction as French Economy Minister Arnaud Montebourg’s criticism at the weekend of French, German and EU austerity policies.

Montebourg’s attack on the thrust of the French Socialist government’s policy caused a crisis yesterday when President Francois Hollande told Prime Minister Manuel Valls to form a new government.

Lagarde, pictured, told Swiss public broadcaster RTS: “What I think is very important for Germany is to participate in the recovery movement in a very intense way. It has the means to do so.”

Describing the European economic recovery as “laborious”, Lagarde stressed that the continent’s economic powerhouse had “room for manoeuvre” – as seen in recent wage |negotiations.

“That leeway has been disclosed in the salary negotiations between the unions and the employers’ organisations,” she said, adding that “hopefully that movement will be amplified and will help propel the European recovery”.

On Saturday, Montebourg criticised German austerity measures and warned that France would no longer “be pushed around”.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza