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Head of the International Monetary Fund (IMF), Christine Lagarde said that the Italian financial reform is key to reducing the impact of the crisis zone of Europe.

As quoted by the Associated Press (AP) Sunday (12/11/2011) after a meeting in Tokyo with Japanese financial officials, including Minister of Finance of Japan in June Azumi, Lagarde said that if Italy should restore political stability and implement financial reforms to provide clarity and restore credibility and confidence.

“Italy needs stability and a sustainable action,” said Lagarde.

The financial crisis that occurred in the euro zone, starting from the debt crisis that occurred in Greece two years ago, where the current crisis has gradually spread to Italy. Italy has the third largest economy among the 17 countries that share the euro currency. This crisis also has ousted Prime Minister Silvio Berlusconi. Berlusconi said he would step down after the reforms passed.

Lagarde expressed concern about the possible consequences outside the euro zone, especially Asia. He proposed to Japan to be careful in times of crisis that hit Europe.

“I declare to the Minister Azumi that no country is immune to face the present circumstances, no matter how developing countries. Japan is no more immune than any other country,” she said

Rated eurozone crisis is only one step from the developed countries fall into the abyss of recession and even depression. Conditions that triggered a wave of bankruptcies and destruction of wealth in Europe, according to warnings from the OECD.

The eurozone is in recession and little credibility the government to maintain the balance of the euro zone at the high wire has been drawn to the limit: one wrong step can now reverse the United States, Japan and other developed countries into the bleak new landscape.

Very tight fiscal policy to send the U.S. economy toward stagnation, the OECD warned Congress a week after the failure of American efforts to reach an agreement spending cuts and stimulus measures.

“The crisis the euro area is a major risk for the world economy at the moment,” the OECD said in a report by the prospect of extremely cold. “A big negative event might send the OECD area as a whole into a recession.”

Even if policy makers manage to avoid the worst, the euro zone remains in the risk of a short recession. While the United States at risk of experiencing a period of slow growth, with developing countries also experienced adverse effects.

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