Investing.com -- European Central Bank President Christine Lagarde urged governments to maintain sustainable public finances, warning that rising debt and energy-related inflation risks threaten economic stability. Speaking at the International Monetary Fund's annual meetings in Thailand, Lagarde described fiscal sustainability as a crucial foundation for broader economic stability. She called on governments to adhere to fiscal rules, reduce excessive debt and improve public spending efficiency to rebuild financial buffers. Lagarde also urged policymakers to ensure that measures addressing the ongoing energy shock remain temporary and targeted, rather than creating additional long-term fiscal pressures.
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