Salient to Investors:
The IMF said:
- Euro area countries should be prepared to lose some degree of control over their budget, pool resources to set up an insurance program and do common borrowing.
- The 17 euro-nations need to toughen rules enforcing fiscal discipline and set up fund transfers before crises develop.
- The first step to dealing with country-level fiscal problems must be larger national fiscal buffers.
- The most urgent task is to set up a backstop for banks.
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