France wants broad debate to push G20 goals: Lagarde
PARIS: France wants a wide international debate as it takes over the G20 presidency to drive its plans for an overhaul of the global monetary system and economic governance, Economy Minister Christine Lagarde said on Saturday.
Lagarde told a meeting of some of France's top economic policymakers and thinkers that the 2008-09 crisis had shown the need to rethink a monetary framework based on 40-yearold ideas that are increasingly outdated.
France wants to focus on ways to control the huge and erratic shifts in capital that buffet emerging economies and on moving away from the dollar as a reserve currency to a diversified system that would reduce imbalances. Lagarde suggested the International Monetary Fund could act as a referee to control capital flows, rather than having countries unilaterally impose restrictions. She also said France would push the idea of the IMF's Special Drawing Right accounting tool playing a bigger role as a reserve unit. "I'm convinced at this point in time, now that the height of the crisis is behind us, that we need to step back, we need to take stock and we need to work now toward more substantial, more structural changes that are needed," Lagarde told a forum hosted by the Paris-based Reinventing Bretton Woods Committee. "France does not have the ambition to propose ready-made solutions ... We don't have a magic stick," she added. -Ap