IMF urges action to tackle debt crisis

German chancellor Angel Merkel talked down the chances Tuesday that a eurozone summit will deliver the silver bullet to resolve the debt crisis as the IMF pressed leaders to take urgent action.

While senior eurozone finance officials met in Brussels to craft a second Greek bailout for Thursday's summit, Merkel warned against more far-reaching proposals that have been invoked to master the euro's year-long crisis.

'If you want to act responsibly, you know that such a spectacular step will not happen, including on Thursday,' Merkel told a news conference after talks in Hanover, northern Germany, with Russian president Dmitry Medvedev.

The German leader voiced concerns about ideas such as restructuring Greece's debt, creating joint euro-area bonds or forming a transfer union — a step towards a federal Europe.

Merkel also said governments needed to reduce their debt and improve competitiveness. 'Thursday will help in this but further steps will be needed, not one spectacular event solving all problems.'

Source : New Age

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