The head of the International Monetary Fund (IMF) has called for the creation of a fiscal federation in the euro zone.
The Managing Director of the IMF, Dominique Strauss-Kahn was speaking at the Bruegel-IMF conference in Brussels on Tuesday when he said “a more integrated and centralized fiscal framework could deliver higher and more stable growth for Europe”
Mr Strauss-Kahn said that the most urgent task facing Europe was to reignite growth and tackle unemployment. He added that European nations need to understand that sharing the same road requires more than fair play and good will.
“European nations have had to surrender some autonomy for the sake of the greater good. This has applied to trade and competition policy and monetary policy, and to some extent also to financial and fiscal policies.”
According to IMF director the key challenges facing Europe right now are “boosting productivity and growth”.
Mr Strauss-Kahn chaired the French Finance Commission from 1988 to 1991. He holds a PhD from the University of Paris and is a qualified lawyer.