Christine Lagarde, France’s minister of finance, seems set to emerge as the leading candidate for the post of Managing Director of the International Monetary Fund, succeeding Dominique Strauss-Kahn, himself a former French Finance Minister. Formal nominations for the post are due on Friday, June 10.
Even if rumors about a Greek departure from the eurozone have been deflated, the recent flurry of speculation should not obscure the hard facts about what Athens needs to do: shrink the country’s defense spending, privatize more public-sector activity and collect more taxes from companies and wealthy citizens. These are the conditions for energizing the country’s economy and businesses.
There is a new twist in the disconnect between, on one hand, official denials on all sides that Greece will ever default on its sovereign debt and, on the other hand, the near-unanimity from economists and analysts that some form of restructuring is inevitable.
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