Press Release No. 10/446

Press Release: IMF Managing Director Strauss-Kahn Calls for Broad Reforms in Europe to Revive Growth

November 19, 2010

Managing Director Dominique Strauss-Kahn of the International Monetary Fund (IMF) today called on Europe to implement far-reaching reforms in a collaborative effort to restore dynamic and long-lasting economic growth and safeguard the European social model.

“Europe must break the shackles of low growth, and stop settling for second best,” Mr. Strauss-Kahn said in a speech at the European Banking Congress in Frankfurt. “This is the only way to save the social model and fulfill the common European destiny. Europe has done better before, and it must do better again.”

Mr. Strauss-Kahn outlined a number of areas for action, ranging from fixing the financial sector—which he said “must surely come first”—to a “single labor market initiative” and rebalancing growth within Europe. More fundamentally, only a collaborative approach driven by the center can forge the reforms that are needed to secure stability, create jobs, and ensure long-term growth, Mr. Strauss-Kahn said. “When the agenda is left with Member States, things stall. It’s time to change course. The center must seize the initiative in all areas key to reaching the common destiny of the union, especially in financial, economic and social policy. Countries must be willing to cede more authority to the center. Mechanisms must be redesigned to give them the incentives to reform,” he said.

“The only answer is more cooperation, and greater integration,” Mr. Strauss-Kahn said. “Ultimately, we need to preserve the achievements of Europe. Now is the time to fortify the economic foundations of the union.”