Europe Warned Against Debt Complacency at Davos

European leaders were warned at the World Economic Forum in Davos on Friday not to forget about the debt crisis—and have their defenses ready if it gets worse. International Monetary Fund president Christine Lagarde pressured Greece and its creditors to hammer out a deal on cutting the debt burden, and she said she was pleased to see Greece and its bond holders going “back to the drawing board” to come up with a plan to loosen the debt burden. U.S. Treasury Secretary Timothy Geithner told delegates that the “only way Europe is going to be successful in holding this together, making monetary union work, is to build a stronger firewall.” Geithner said that while the IMF can help, its resources can’t be used as a “substitute for a more effective” domestic response.