Bloomberg News

IMF’s Blanchard Says Italy, Spain Can Show They Are Solvent

December 14, 2011

Dec. 14 (Bloomberg) -- Olivier Blanchard, the International Monetary Fund’s chief economist, said Italy and Spain can demonstrate that they are solvent with “reasonable” borrowing costs and policies.

“These countries are not in great shape but the effort this requires” is “feasible,” Blanchard said on a panel at the Council on Foreign Relations in New York today. “Our assessment is that they can.”

While they “just have to go at it,” they must undertake fiscal consolidation “not too quickly” as it will thwart growth, Blanchard said. “This is a marathon.”

--Editors: Chris Wellisz, Gail DeGeorge

To contact the reporter on this story: Caroline Salas Gage in New York at csalas1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net


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