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IMF's Lagarde sees improved world economic outlook

By DESMOND BUTLER Published: January 18, 2013
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“They should clearly touch on entitlements, among other things,” she said.

In Europe, Lagarde said she sees a lot of progress on reform. She said the European Union has a lot of new tools to deal with financial crisis.

“And yet, firewalls have not yet proven operational,” she said. She added that the EU still has work to do on its banking union in order to prevent future problems.

On Greece, which has seen the most acute collapse of all the EU countries and which many believed would have to leave the currency union, Lagarde said recent reforms appeared to have restored confidence.

“This time it's different,” she said.


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