IMF: Growth agenda imperative

A new growth agenda is imperative, the IMF has warned in a series of expert reports on the eurozone that held out little hope of a recovery in the near future but called for a slowing of austerity measures where possible.

It also said some periphery countries needed to make adjustments of between 5% and 15% to regain competitiveness, adding that the euro was over valued in deficit countries at the moment.

The steps being taken to force down government deficits are holding back growth, the Washington-based body said, advising the pace of consolidation be moderated where possible but insisting structural reforms be completed.