IMF’s Lagarde: Series of tensions from trade tariffs are key risk to euro zone growth

The International Monetary Fund (IMF) Managing Director Christine Lagarde is out on the wires now, via Reuters, providing key quotes found below.

• Euro zone needs capital market union to improve financing for companies.
• Euro zone deposit insurance scheme should be considered sooner rather than later.
• Euro zone fiscal capacity could be based on a rainy-day fund.
• We don’t yet know what is Italy’s policy set, IMF to visit Italy soon, hearing some encouraging statements on fiscal discipline.
• Series of tensions from trade tariffs are key risk to euro zone growth.
• Second risk to European growth is lack of progress in Brexit talks.
• Agree  with recent ECB decision to keep interest rates low for a long time.
• Siscal space should be rebuilt where it is missing in the euro zone.
• Euro zone policy efforts should pursue trade openness.
• Resilience of large euro zone banks has improved, risks have been reduced, NPLs have fallen.
• In some euro zone countries the stock of bank bad loans must be reduced urgently.