The eurozone’s debt crisis could “overwhelm” the region’s favourable growth outlook, while the “unproductive” debate on restructuring Greek debt must stop, the International Monetary Fund has warned.
Casting a further shadow on the European Union’s attempts to resolve the crisis over Greece, the latest IMF report on the eurozone economy, issued on Monday, struck a strikingly gloomier tone than previous documents from the Washington-based institution.
“A broadly sound recovery continues, but the sovereign crisis in the periphery threatens to overwhelm this favourable outlook, and much remains to be done to secure a dynamic and resilient monetary union,” the report said.
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