Top Economic Powers Agree Joint Action Against Crisis

The world’s top economic powers want to brace themselves with joint action against the crisis. “We will act together to restore confidence and financial stability and try to revive global growth,” said the steering committee of the International Monetary Fund (IMFC) after a meeting on Saturday in Washington. The board consists of 24 countries with a seat on the Executive Board of the Fund members, including Germany, the United States and China.

The new head of the fund, Christine Lagarde, reviewed the achievements in the fight against the financial turmoil. “The world economy has completed half of the work that needs to be done. We are at a critical junction,” she said.

The countries of the Euro-zone “will do everything necessary” to resolve the debt crisis and to ensure the stability of the financial system in the single currency. This also included the implementation of the resolutions of the emergency summit in Brussels in July. She also explained about how to maximize the effectiveness of the rescue work by EFSF (European Financial Stability Facility).

The industrial nations are to maintain an economic stimulating monetary policy as long as inflation remains under control and the consequences for other countries be kept in mind. The rich countries must also ensure that the banks are very well capitalized and have access to funds.