In a paper for the Centre for Policy Studies, Tyrie also suggests the IMF’s “credibility is on the line” and that Britain and other non-Eurozone countries could wield more influence through the fund than by commenting on what EU institutions should do. And he adds that IMF resources might need to be beefed up to the tune of €1 trillion.
“At the moment the IMF is treating the ECB and the [EU] Commission as partners in discussions. This should end. Both European bodies have an existential conflict of interest,” Tyrie says. “Only the IMF has the necessary detachment and economic credibility to help sort out this crisis. The IMF is not perfect... but it is a great deal better than nothing,” Tyrie adds. “The IMF now needs to show the toughness in negotiations with which it has made its reputation.”