December 11, 2011
An agreement reached by European countries for deeper economic integration was a step in the right direction but not a complete solution for the euro zone’s debt crisis, International Monetary Fund (IMF) chief economist Olivier Blanchard said on Sunday.
“I’m actually more optimistic than I was a month ago, I think there has been progress,” Blanchard told the Globes business conference in Tel Aviv.
“What happened last week is important: it’s part of the solution, but it’s not the solution.”
He did not say what further steps were needed.
European leaders agreed in Brussels on Friday to draft a new treaty for deeper euro zone economic integration, although Britain, the region’s third-largest economy, refused to join the 17 euro states and nine other EU countries in the fiscal union.