Japan 'not immune to euro crisis'

The chief of the International Monetary Fund (IMF) has said Italy’s financial reform is key to reducing the impact of the eurozone crisis on the rest of the world, including Japan.

Christine Lagarde said Italy must promptly restore political stability and implement financial reforms to improve the ongoing eurozone crisis and offset its global impact.

After meeting with top Japanese financial and banking officials in Tokyo, Ms Lagarde expressed concerns about the consequences of the eurozone, particularly on Asia.

She said that all countries are interconnected and that Japan is no more immune than other nations.

Europe has bailed out Greece, Portugal and Ireland. Italy is now under pressure to control its dangerous debt and restore credible political leadership.