2023-11-23 22:59:22
By Le Figaro with AFP
Published yesterday at 11:59 p.m., Updated 4 hours ago
France, Italy and Spain “have seen their debt/GDP ratio increase considerably,” considers the head of the IMF. Yuri Gripas / REUTERS
Italy, France and Spain must “make budgetary adjustments», Estimates the Managing Director of the IMF Kristalina Georgieva in an interview with several European newspapers, also worrying regarding the consequences of the conflict in the Middle East and the rise of populism. France, Italy and Spain,saw their debt/GDP ratio increase considerably», notes the head of the International Monetary Fund (IMF) in this interview with several European newspapers including French The echoes published Thursday.
«Their fiscal response to Covid has rightly been very firm, but it has led to rising debt levels and also rising deficits“, she explains, now calling on them to “really (…) make budgetary adjustments“. For Italy, “the problem is compounded by the slowdown in growth resulting from the withdrawal of policy support measures“, according to her. “What is currently in the Italian budget should be strengthened: the fiscal adjustment Italy is implementing will not work quickly enough to reduce deficits and debt levels», advanced Kristalina Georgieva.
Negative impact on Israel if the war continues
Noting that France is “in a better position because growth allows for budgetary adjustment“, the Managing Director of the IMF nevertheless believes “that 2024 must mark a turning point towards budgetary tightening“. Spain, which has benefited from a strong rebound in services and tourism, forecasts an adjustment of 0.3%, which, it says, the IMF judges “acceptable as long as Spain does not renew the political support measures which are due to expire at the end of this year».
Referring to the war between Israel and Hamas, Kristalina Georgieva notes that if she “continues or even intensifies, it will have a tangible impact» on the global economy. “Growth in Israel will inevitably be affected“, she adds, and “the same goes for neighboring countries like Lebanon, Jordan and Egypt, where tourism is also important“. Asked regarding the rise of populism, Kristalina Georgieva believes that “if we are not aware of the need to constantly upgrade people’s skills (…), we might once once more fuel populism“. But she also highlights “the role of social networks», «a platform for the loudest, angriest and hateful“. Asked regarding the economic program of Argentine President-elect Javier Milei, the head of the IMF emphasizes that “the country needs an ambitious reform plan». «This has been our message to Argentina for some time and it is still the same», she adds.
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