US backs Lagarde to lead IMF

"For the IMF to be devoting so much financial and human capital to try to combat a problem in Europe which is largely political in origin and can only be solved by political agreement is controversial," said Simon Tilford, the chief economist of the Centre for European Reform in London. "It threatens the IMF's credibility. There is a risk that her perceived objectivity will be brought into question because of this," Mr Tilford said. On the other hand, "it's possible she will come to believe debt restructuring could be in France's interest, and that kicking the can down the road could ultimately cost the French more than an earlier move to lance the boil."