STRAUSS-KAHN: Global Recovery Is Not Creating Enough Jobs

This article originally appeared at elEconomista.es, an online Spanish business news website. Click here for the original version of this article, in Spanish.

During a press conference in Washington, Dominique Strauss-Kahn, the managing director of the IMF reassured the audience that we are experiencing a recovery “without enough jobs,” and that right now, “the central issue” is to create “jobs, jobs, jobs.

“It’s too much to say it’s a jobless recovery, but recovery is certainly not creating enough jobs,” Strauss-Kahn said. “There will be many challenges ahead, especially unemployment among young people,” he added.

It’s clear that the situation is not entirely rosy. As described by Kahn, who avoided answering any question about his possible presidential run in the upcoming French elections, the recovery has been “unbalanced” and uncertainty is still “very high.” In that sense, he specified that the global economic recovery is not going as desired, and warned that “complacency” has arisen among contries around the globe.

“In the IMF, there’s no room for complacency,” he said before leaving the room, adding that therefore, the international community should not accept it either.

Strauss-Kahn did not talk much about the problems of the peripheral countries of the European Union, but when asked directly about the future of Greece, Strauss-Kahn did not hesitate even a moment to state that the country would “survive” and avoid the restructuring of its debt.

“Greece will recover but the process will be painful,” he said.

Strauss-Kahn explained that part of the problem is that what has been done so far has not achieved the expected result.

“For example, Greece’s richest citizens are still not paying the taxes paid in other European countries,” he said. He also criticised the EU policy debate which “is not working well” and recommended that European authorities fulfil their promises and develop a broader plan to ensure the viability of Greece.

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