Lagarde tells Greece to take its medicine
IMF leader Christine Lagarde has warned Greece that it must “pay the price” of remaining in the Eurozone as she marvelled at the “inconsistencies” in the country’s recent elections that favoured anti-bailout parties.
Lagarde said: “Efforts have to be made and have to be shared. Greece has to be a member that also implements its programme and also undertakes efforts, which it has to a point.
“It has to do a lot more. That is absolutely the case. It had a long way to go, it has made efforts, and the Greek population has made huge efforts, but they have more to do,” said Lagarde, who leads the fund helping to bail out Greece.
“There are more structural reforms to be had, there is more tax to be collected and that has a price.”
She told the BBC that the Eurozone nations had to “be prepared for all situations and solutions” including Greece leaving the currency bloc.
She added that “it is quite remarkable that the Greek population has voted in a way that is not conducive to the formation of a government” while continuing to take bailout funds.
“There is an inconsistency between sending away those political groups that support the Eurozone … and by the same token saying we want to be part of the Eurogroup and have the euro as our currency, but it has a price.”
She said the other euro bloc nations should weigh up further support of Greece, depending on whether they “consider the integrity of the zone as sufficiently beneficial so as to justify additional investment”.