The head of the International Monetary Fund (IMF) criticized the member nations of the eurozone on Tuesday for failing to take forthright action in response to the crisis of confidence over the past weeks.
According to a Reuters report, Dominique Strauss-Kahn, IMF managing director, said after an Athens meeting with Greek Prime Minister George Papandreou, "The eurozone has to provide a comprehensive solution . . . The piecemeal approach, one country after another, is not a good one." Lack of action has caused turmoil in European markets since last week.
On Monday, Strauss-Kahn had called for an increase in the rescue facility and a more aggressive bond purchase policy on the part of the European Central Bank (ECB). Neither action was taken, and German Chancellor Angela Merkel dismissed any need for additional contributions by member nations to the rescue facility. A call for a eurozone-issued bond, or E-bond, had been proposed by Giulio Tremonti, Italy's finance minister, and Jean-Claude Junker, Luxembourg's prime minister, but the topic was not discussed in the Monday evening meeting.
