Oct 17, 2014 1:57 PM
IMF: Market sell-off may have been 'over-reaction'
The Associated Press
PARIS (AP) The head of the International Monetary Fund says market turmoil this week may have been an "over-reaction," as leading economic figures met to discuss Friday the global economy and worries about another recession in Europe.
Christine Lagarde described the week as a "correction on the markets, and perhaps at this stage, an over-reaction."
Reforms in France are also on the agenda at Friday's meeting in Paris, in a country crippled by flat growth and high unemployment.
The Organization for Economic Co-operation and Development praised the French government's latest economic plan, especially 30 billion euros ($38.5 billion) in tax cuts for companies, and said it could boost growth by 0.3 points per year over the next five years if it's implemented quickly and deepened.
French President Francois Hollande pleaded for "flexibility," saying, "We need structural reforms, but at the same time we need to present a budget that allows us to reach the growth goals we want," he said.
Hollande's finance and economy ministers are heading Monday to Germany which has berated France for not sticking to deficit targets to discuss Europe's economy.