For Europe, IMF Aid May Be Hard To Swallow |
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April 16, 2010
The evolving economic problems in Greece have pushed the International Monetary Fund and European leaders into sometimes tense talks over how deeply an agency associated with propping up developing countries should push into one of the developed world's major economic zones -- negotiations that could shape future European economic policy.
The evolving economic problems in Greece have pushed the International Monetary Fund and European leaders into sometimes tense talks over how deeply an agency associated with propping up developing countries should push into one of the developed world's major economic zones -- negotiations that could shape future European economic policy.
Influenced by fundamental issues such as the independence of the European Central Bank, and narrower ones such as whether IMF Managing Director Dominique Strauss-Kahn plans to run for the French presidency next year, the discussion has reflected the economic and political complexity of an IMF bailout near the economic core of the developed world.
The process advanced a step Thursday when Greece, the IMF, the ECB and the European Commission announced that talks would begin Monday over the economic policy changes the IMF would require in return for a multi-year program of loans to help Greek officials restructure. Greece still has not asked for help and maintains that it will try to manage its problems by borrowing on the open market.
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