International Monetary Fund (IMF) Managing Director Christine Lagarde called on the German government Monday to bear more responsibility to address the debt crisis in the eurozone.
Europe needs a protective wall, said Lagarde in reference to the European rescue tool (ESM) to addressing the debt crisis.
Lagarde, who arrived in Berlin yesterday and met with Chancellor Angela Merkel over the debt crisis. She joined the camp – Italy, Spain and the ECB Chairman, that wants to increase the funding of ESM.
But Merkel opposed the raising of funding, saying German was not convinced at this time in the need of such a move.
Lagarde’s comments on boosting the ESM funding, observers believe, aim at increasing pressure on Germany a week before the EU summit.
European countries like Italy and Spain are demanding the doubling of the ESM’s 500 billion euro funding.