2012-01-28 17:54:26

Davos: Lagarde calls for Eurozone to boost financial defenses

International Monetary Fund chief Christine Lagarde on Saturday pushed for the euro zone to boost its financial defences. Some attendees at the ongoing World Economic Forum in Davos, Switzerland, still doubt the viability of the Euro. Countries beyond the 17-country bloc want to see its members promise more money before they commit additional resources to the IMF, which this month requested an additional 500 billion euros ($650 billion) in funding.

At a panel discussion on Saturday on the economic outlook from which euro zone leaders - most notably Germany - were absent, IMF chief Christine Lagarde said euro zone members must develop a clear, simple financial firewall to limit the spread of the crisis and increase lenders trust in the euro zone. Lagarde said the crisis was already impacting economies far beyond Europe.

Lagarde's comments rounded out a crescendo of calls at the Davos Forum for the euro zone to boost its financial defences. There has been a palpable sense of hope at the annual five-day conference that the euro zone is pulling back from the brink of catastrophe, though business leaders are equally worried that Europe's woes will hold back a global recovery. Listen: RealAudioMP3

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