Lagarde wants “bold action” at G7 meeting

International Monetary Fund chief Christine Lagarde warned industrialized countries not to “drag their feet” in steering the world out of economic crisis, ahead of Friday’s G7 meeting.

The BBC reports that the G7 is meeting for two days in the French city of Marseille to consider its "coordinated response".

Speaking in London beforehand, Lagarde said:

The key message I wish to convey today is that countries must act now – and act boldly – to steer their economies through this dangerous new phase of the recovery.

All this is happening at a time when the scope for policy action is considerably narrower than when the crisis first erupted. But while the policy options may be fewer, there is a path to recovery.

Lagarde, France’s former finance minister, will be joined by current Finance Minister Francois Baroin, along with ministers from Canada, the United States, Japan, Germany, Britain and Italy.

The G7 meeting comes after US President Barack Obama unveiled a $447 billion plan that he said would create jobs and cut taxes.

Lagarde praised the American plan, which Obama told Congress should kick-start the world’s largest economy.

(Read more on GlobalPost: US jobs plan – Barack Obama outlines key proposals, VIDEO)

It meeting also comes as the Organization for Economic Co-operation and Development revised downwards its growth forecasts for the rest of 2011 for G7 nations.

The European Central Bank also cut its growth forecasts for the eurozone for both 2011 and 2012.

According to Agence France-Presse, a report issued on Thursday said a new recession in richer nations could not be ruled out, warning the eurozone crisis could deepen.