US insists that an IMF firewall is not needed
As the International Monetary Fund canvasses its member states about boosting the Fund’s lending power, the United States is standing by its position that there’s no need for an international firewall for the Eurozone. Via Bloomberg: “Europe has the capacity to solve its problems,” the U.S. Treasury said today, reiterating its position. “The IMF cannot ...
As the International Monetary Fund canvasses its member states about boosting the Fund's lending power, the United States is standing by its position that there's no need for an international firewall for the Eurozone. Via Bloomberg:
As the International Monetary Fund canvasses its member states about boosting the Fund’s lending power, the United States is standing by its position that there’s no need for an international firewall for the Eurozone. Via Bloomberg:
“Europe has the capacity to solve its problems,” the U.S. Treasury said today, reiterating its position. “The IMF cannot substitute for a robust euro area firewall We have told our international partners that we have no intention to seek additional resources for the IMF.”
My guess is that this will be looked back upon as a critical failure of leadership by the world’s leading power. Ultimately, it does not matter that Europe should have built a firewall of their own; it only matters that there is a firewall. An administration that came to office committed to restoring America’s committment to building coalitions and strengthening multilateralism is failing on what may be the critical test of its first term. Current domestic politics means that nobody is calling them on it, but that won’t be much consolation when the crisis hits.
David Bosco is a professor at Indiana University’s Hamilton Lugar School of Global and International Studies. He is the author of The Poseidon Project: The Struggle to Govern the World’s Oceans. Twitter: @multilateralist
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