Lagarde Calls on EU Countries to Find Common Ground, SZ Reports

International Monetary Fund Managing Director Christine Lagarde called on Europeans to find more common ground in the crisis, Sueddeutsche Zeitung reported in an e-mailed preview of an article to appear today.

Lagarde spoke in favor of joint European bank supervision, common guarantees for bank deposits, and a debt accord under which all members will be responsible for a portion of the debt others hold, the newspaper said, citing an interview with Lagarde.

Lagarde added that jointly guaranteed debt would be a sign to markets that Europeans take the issue seriously, SZ reported. Uncertainty and doubts about the long-term vision of politicians and the sustainability of the euro area are undermining efforts to preserve the euro, Lagarde also told the newspaper.

An IMF delegation is now underway in Spain, although Spain so far hasn’t asked the multilateral lending agency for assistance, SZ cited Lagarde as saying.

To contact the reporter on this story: James Kraus in London at jkraus2@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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