The development of the situation in Greece is the biggest risk weighing on the growth prospects of the Eurozone. Reduce contagion channels of instability to other countries of the monetary union should be a priority, the IMF recommended.
The eurozone is now better equipped to weather the instability in Greece but You must be prepared to use “all available tools” to contain the risk of contagion, recommends the International Monetary Fund (IMF) in the annual report on the situation in the eurozone.
The ECB, for example, should be ready to consider extending the period of validity and the range of assets that can buy under monetary easing program, and politicians should strengthen the institutional arquirectura Eurozone and should the priority be given to the creation of a common fund of deposit guarantee, have still missing from the banking union.
“Although the market reaction to the reform package recently approved in Greece has been generally positive , new episodes of significant uncertainty and volatility can not be ruled out “by the IMF” urges policy makers to use, if necessary, all available instruments to manage the risks of contagion that may have originated in Greece. “
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