Commission and IMF clash over austerity approach

Deep and festering divisions between troika members, the IMF and the European Commission, came to the surface with Brussels defending itself and retaliating against criticisms by the Washington-based body.

There have been carefully concealed divisions between the two bodies over the four programmes they are involved with, including Ireland, where the most recent disagreement was over the approach to the housing mortgage issue.

But the IMF’s staff document on Greece pulled no punches, admitting they had made mistakes in their handling of the near melt-down in that country, but blaming the European Commission.