Georgieva (IMF) urges Spain, France and Italy to "buckle up now"

Urges them to implement budgetary adjustments, including the end of the measures introduced to alleviate the rise in inflation

MADRID, 24 Nov. (EUROPA PRESS) -

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has urged the governments of Spain, France and Italy, where debt and deficit levels have increased significantly, to "buckle up now" and implement budget adjustments , including the end of measures introduced to alleviate the rising cost of living.

"They have to fasten their belts now and proceed to make budgetary adjustments," urges the Bulgarian economist in an interview with the newspaper 'El Mundo', where she recommends "more significant fiscal adjustments" to all of Europe's advanced economies.

In the case of the three countries mentioned, Georgieva recalls that they have seen their debt-to-GDP ratios increase significantly, after their "appropriately strong" fiscal response to Covid led to an increase in debt levels and also in the deficits.

However, the director of the IMF specifies that there are differences between the three economies and expresses, in the case of Spain, her confidence that the projected adjustment of 0.3% in the deficit can be reduced, although "as long as Spain does not renew relief measures," which are expected to expire at the end of this year.

At the European level, Georgieva points out that, unlike the United States, which has recovered its pre-pandemic trend, the euro zone is still 2% below its pre-pandemic trend, "and growth is very modest ".

In this sense, taking into account the greater impact on the EU of the war in Ukraine through the energy channel and given the demographic challenge for very fair labor markets for personnel, the Bulgarian economist emphasizes that "Europe needs determination to carry out structural reforms that reactivate growth".

"I think the time has come for rulers to do the right thing: more courage, more strength in leadership, because hard times are coming and we have to do what is necessary, even if it is not popular," he defends.