YES. Dominique Strauss-Kahn at the 9th Yalta Annual Meeting: Economy Must Be "Re-started" in an Innovative Way

Tactics employed by international financial institutions and European governments to combat the economic problems are to be changed, stated former Managing Director of the International Monetary Fund Dominique Strauss-Kahn at the session on "The Future of the World Economy" of the 9th Yalta Annual Meeting.

"Economic recovery has been delayed again. The prospects are grim. On the global scale, the growth will be sluggish and accompanied by poor financial conditions. Policies of the key countries did not restore confidence in the economic recovery," former head of the IMF summed up the situation in the global economy.

In his view, the problem of the fiscal collapse and growth of public debt in the U.S. remains to be serious, along with the debt crisis in the eurozone. Traditional tactics advocated by the IMF in solving problems of Greece have failed to meet expectations.

"Economy must be re-started in an innovative way. We believed that the main thing was to avoid losses. That is, to lower the rates, to extend deadlines on debt repayment. And we haven’t accepted the fact that it is better to suffer losses now, if they are unavoidable, without turning away from them. And now an avalanche of economic problems is growing and expanding,” stated Dominique Strauss-Kahn.

He believes that rescue measures were justified during the acute phase of the crisis, but today the situation is different. "Fire-fighters are good when fire is raging. But then we must deal with recovery. European leaders must demonstrate that they can handle it," said former head of the IMF.

Adapted from