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Lipsky Says Several European Countries Face ‘Demanding’ Steps

European countries undergoing fiscal repair will need to take “difficult” steps to promote growth and return to financial stability, said John Lipsky, the acting leader of the International Monetary Fund.

“Several peripheral euro-area countries today remain in critical situations,” Lipsky said in prepared remarks before the Bretton Woods Committee in Washington, without singling out specific nations. “Difficult and demanding measures will be required in order to avoid an even more serious crisis and to restore economic health.”

The No. 2 official of the Washington-based lender did not address the resignation of IMF chief Dominique Strauss-Kahn following his arrest on sexual assault charges, other than saying, “I deeply regret the circumstances that have made it necessary for me to substitute for the fund’s managing director.”

To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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