The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, informed the Eurogroup about the Fund's assessment of the euro area's economic outlook, risks and policy challenges. The assessment was carried out in the context of the IMF's annual Article IV consultation.The IMF confirmed that economic recovery in the euro area. The IMF recommended that the euro area take advantage of the current favourable financing conditions and continue to focus on sound fiscal policies and structural and financial sector reforms. The completion of the Economic and Monetary Union should also be pursued.Lagarde said there was a new political reality that is conducive to strengthening of the architecture of the euro. Including a common deposit insurance scheme and fiscal backstop. Secondly a stronger capital market that would be encouraged by Brexit and by the repatriation of some of the activities (CCP) that were carried out in London. Finally, on a common fiscal capacity, the IMF say the rules must be complied with.
TagsEU EU Reporter Euro Christine Lagarde Article IV fiscal backstop CCP