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IMF Warns Eurozone Not Resilient Enough to Handle Potential Future Shocks

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MOSCOW (Sputnik) - The Eurozone is stronger than it was 10 years ago, but it is not strong enough to withstand a potential new crisis, Managing Director of the International Monetary Fund (IMF) Christine Lagarde said Thursday.

"Is the euro area today better equipped and better prepared for the unexpected economic storms that will come? And the short answer to that is, yes, the currency union is more resilient than it was 10 years ago, but it is not resilient enough," Lagarde said at an event organized by Banque de France and the European Money and Finance Forum.

The Eurozone's banking system is safer than it was, but not safe enough; the economic situation, in general, is better, but the wealth is not shared enough, Lagarde added.

"Now is the time to strengthen this unique economic ecosystem," Lagarde said.

The Euro logo is pictured in front of the former headquarter of the European Central Bank (ECB) in Frankfurt am Main, western Germany, on July 20, 2015. - Sputnik International
European Central Bank Signals No Rate Hikes as Eurozone Faces Slowdown

On Wednesday, the European Central Bank (ECB) President Mario Draghi said the ECB might avoid raising interest rates in the face of weak growth projection and could look at measures that would help mitigate side effects from negative rates, should there be any.

READ MORE: Eurozone Banks Buy Gov't Bonds Amid Crisis ‘Dead Loop' Concerns — Report

Meanwhile, a continuous recession in manufacturing across the Eurozone is prompting concerns regarding a possible recession in the single-currency area, as economists believe the service sector might be not enough to support faltering GDP growth.

READ MORE: Eurozone Faces Heightened Recession Worries Amid Weak Manufacturing PMIs

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