The International Monetary Fund stands ready to help Greece, which is struggling to stabilize its public finances, but understands that other members of the euro-zone currency bloc want to resolve the matter among themselves, the fund’s managing director said.
- Strauss-Kahn
Greece recorded a budget deficit of nearly 13% of gross domestic product in 2009, far above the European Union’s 3%-of-GDP limit.
“If I’m asked to step in, we’ll do it, but I completely understand the Europeans who want to try to resolve the problem among themselves,” Dominique Strauss-Kahn said in an interview with RTL radio, without elaborating.
Involving the IMF would effectively be an acknowledgment that the euro zone’s own procedures for keeping members in check aren’t strong enough, and it would also suggest that the euro zone is the kind of place that has to go to the IMF for help.
Greece’s debt woes haven’t weakened the euro zone overall, Mr. Strauss-Kahn said.
“I think it’s the euro zone’s first real test, and I think it will get through it,” he said. “[It] would seem [that the euro zone] can’t allow itself not to help Greece in one way or another, so I’m rather confident.”
He also expressed confidence in Greek Prime Minister George Papandreou to take the necessary measures.