"Clearly, the Irish recovery is quite extraordinary, because when you look at the growth, it is the highest in the eurozone, and if you look at unemployment, it is down almost 3%. If you look at debt, it is falling. If you look at the deficit, it has almost been halved. So most of these figures are really solid and shows "
James Franey, euronews:
Christine Lagarde is one of the most influential women in the world. She heads the International Monetary Fund (IMF), an institution responsible for ensuring financial stability in the world.
Euronews met him in the Irish capital Dublin to discuss Greece, the future of the eurozone and the global economy in 2015.
Christine Lagarde, you are the head of the IMF, and you're here in Dublin to discuss the lessons of the Irish bailout. Is Ireland really a model when considering the social cost of what happened?
Christine Lagarde, Managing Director of the International Monetary Fund:
If we look at the figures ... Clearly, the Irish recovery is quite extraordinary, because when you look at the growth, it is the highest in the eurozone, and if you look at unemployment, it is down almost 3 %. If you look at the debt, it is falling. If you look at the deficit, it has almost been halved. So most of these figures are really strong and show the way of a good recovery. However, unemployment is still over 10%, youth unemployment is above 20%. So we are not yet out of the way. So while Ireland has made a good start, it still has to continue to work on reducing unemployment and job creation. These will be the key to real success of the Irish recovery.
James Franey, euronews:
And there are also 750,000 people living in poverty in Ireland, according to government figures. There including the history of this former pharmacist of 77 years who committed suicide in Athens because he would not let debts to his children? There including the history of this former pharmacist of 77 years who committed suicide because he would not let debts to his children? How do you feel when you hear these stories?
Christine Lagarde, Managing Director of the International Monetary Fund:
Well, like any other human being. We are strongly affected by these tragedies and misery that these people experience.
James Franey, euronews:
No regrets with respect to policies in place?
Christine Lagarde, Managing Director of the International Monetary Fund:
But when we have to intervene, because a country calls us to help because they are not able to handle the situation ... they spent more than they could afford ... they not control their public finances ... and the situation is very bad.
So we have to go there to help the country to replace good economic conditions, restoring access to finance and to ensure that the economy creates jobs instead of destroying it.
James Franey, euronews:
So the mantra is "Stay calm, and continue the cuts." Was there anything else to do these severe austerity measures?
Christine Lagarde, Managing Director of the International Monetary Fund:
You know, I think in the case of Ireland, the objectives were quite clear! On financial and tax issues, the authorities wanted to take responsibility, as many people in Ireland. They all wanted to get out of the deep financial crisis in which they found themselves. There was also an extraordinary human power to try to carry out the reforms and get the results that we have today, especially with the jobs that are created.
James Franey, euronews:
Let's talk about Greece. I know this is a very sensitive subject. There are elections coming.
Christine Lagarde, Managing Director of the International Monetary Fund:
Which is why I can not tell you too ...
James Franey, euronews:
Well try anyway ...
Christine Lagarde, Managing Director of the International Monetary Fund:
We try to be respectful.
James Franey, euronews:
I understand. But the leader of Syriza, Alexis Tsipras, is that a big part of the debt is cleared. This is what he will ask the troika (EU, ECB and IMF). Do you think it would succeed?
Christine Lagarde, Managing Director of the International Monetary Fund:
I think we have to wait until Friday. To see what the results of the elections in order to understand what kind of coalition will fall into place. And it will remind the country has made commitments to its European partners. At its creditors. And that structural reforms must be implemented to redress the Greek economy. Very little on which they were committed have been implemented, and we must continue to work. Not for us. Not for the European partners, not for the European Parliament, as recalled by Mr. Schultz, but for the Greek people themselves.
James Franey, euronews:
And for some North European banks also ...
Christine Lagarde, Managing Director of the International Monetary Fund: In terms of taxes, hardly setting has been respected. When I say that all the -y Greeks understood the riches must pay taxes, I insist. Taxes must absolutely be seen, it is the goal.
James Franey, euronews:
Is the Greek debt sustainable?
Christine Lagarde, Managing Director of the International Monetary Fund:
We'll see about that when we get the work reviewed and when negotiations resume, ie as soon as the election is past and that the coalition is in place, it must be a coalition.
James Franey, euronews:
You have no backup plan?
Christine Lagarde, Managing Director of the International Monetary Fund:
Even if I had one, I would not tell you anyway. Thank you for trying!
Moreover, the IMF always has a backup plan when he is called to help any of our members.
James Franey, euronews:
What are the issues of the Greek election?
Christine Lagarde, Managing Director of the International Monetary Fund:
You know, it's like any other election. The people democratically decide what he wants, what he expects, and what will be its future.
James Franey, euronews: as the future of Greece in the Eurozone?
Christine Lagarde, Managing Director of the International Monetary Fund:
It's not for me to decide. This is an issue for the European partners of Greece, but I have heard many comments on the subject, and I'm sure you will too.
James Franey, euronews:
What would be the consequences of a Greek exit of the Eurozone? I mean, what the impact on the Greek economy if that were to happen? I know it's a hypothetical question, but I am interested in your views as IMF Managing Director ...
Christine Lagarde, Managing Director of the International Monetary Fund:
Hypthétique way of the issue of a release of a member of the euro zone, which to my knowledge is prohibited under the terms of the partnership of the eurozone, I think the result would be a massive financial cost.
James Franey, euronews:
Let's talk about the global economy. What are the main challenges for 2015?
Christine Lagarde, Managing Director of the International Monetary Fund:
Growth and the labor market are not significantly different from 2014, apart from the fact that we are concerned about the potential growth in many advanced economies, except the United States. The United States is clearly rebounding. It is rooted in a strong way, what we do not see in the eurozone and Japan by exemple.Même if I had one, I would not tell you anyway.
James Franey, euronews: why not in the Eurozone?
Christine Lagarde, Managing Director of the International Monetary Fund:
You know the effect of the combination of the relatively gradual and slow recapitalization over time. The fact that there is an inflation very, very, low clearly has an effect on potential growth, and therefore on the level of trust, and you find yourself in this kind of dangerous loop, which we must leave to restore confidence, to restart investment and growth.
James Franey, euronews:
Just one last question, if I may evoke your personal career. I know that like any good politician, civil servant, you are focused on your task, but Mr. Sarkozy ...
Christine Lagarde, Managing Director of the International Monetary Fund:
You have your answer!
James Franey, euronews:
But Mr. Sarkozy has made his return to the French political scene. You were close to him when you were in the French government. Obviously, it is now the head of the opposition with the UMP? If Mr. Sarkozy called you to ask you to join him, what would you say to him?
Christine Lagarde, Managing Director of the International Monetary Fund:
I do not make comments on French politics ...
James Franey, euronews:
You do not have plans?
Christine Lagarde, Managing Director of the International Monetary Fund:
It is not my responsibility, it's not my mission, it is not my interest.
James Franey, euronews:
You do not plan to return to French politics?
Christine Lagarde, Managing Director of the International Monetary Fund:
I told you that I will not answer.
James Franey, euronews:
Christine Lagarde, thank you.
Christine Lagarde, Managing Director of the International Monetary Fund:
The pleasure is all mine.
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