Euro debt crisis - Lagarde call challenges EU to act

The global economy has entered a dangerous new phase according to Christine Lagarde, managing director of the International Monetary Fund (IMF).

She has been critical of her former European colleagues for not talking with a single voice to save the euro.

In recent speeches, she has been warning that the austerity that Europe has been imposing on Greece and other countries in financial difficulties has been counter productive because it is stifling economic growth.