IMF calls for political clarity

The head of the International Monetary Fund called yesterday for greater “political clarity” in Greece and Italy, after talks with Chinese leaders.

The head of the International Monetary Fund called yesterday for greater “political clarity” in Greece and Italy, after talks with Chinese leaders.

Greece and Italy are grappling with domestic political upheaval brought on by the sovereign debt crisis that has engulfed the eurozone, and Christine Lagarde said both countries urgently needed to sort out their leadership difficulties.

“Political clarity is conducive to more stability... it is much needed in Greece, it is much needed in Italy,” the IMF chief told journalists in Beijing. Confusion over the future leadership of both countries was “conducive to volatility”, added Lagarde, who is on a two-day visit to China.

Lagarde also said emerging economies had a role to play in resolving the debt woes threatening the global economy, calling on them to allow their currencies to appreciate.

China has been accused by the West of keeping its currency grossly undervalued.

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