Lagarde Hits Out at Germany and Netherlands on Public Spending

Christine Lagarde has called on Germany and the Netherlands to use their budget surpluses to fund investments that would help stimulate the economy, in a sharp rebuke that comes only days before she becomes European Central Bank president, the Financial Times reported. The former head of the IMF said there “isn’t enough solidarity” in the single currency area, adding: “We share a currency, but we don’t share much budgetary policy for now.” “Those that have the room for manoeuvre, those that have a budget surplus, that’s to say Germany, the Netherlands, why not use that budget surplus and invest in infrastructure? Why not invest in education? Why not invest in innovation, to allow for a better rebalancing?” asked Ms Lagarde. Read more