IMF says Europe, US must deliver on promises to improve global economy

WASHINGTON—The head of the International Monetary Fund (IMF) says Europe and the U.S. must deliver on commitments to achieve a decisive turn in a global economy fraught with uncertainty.

Christine Lagarde says what is needed is a sustained recovery, not a bounce.

To achieve that objective, she says, decision makers must be real action-takers and deliver on their promises to carry out programs to get their economies back on track.

Lagarde said in a speech that the most urgent action was needed in Europe, the epicenter of the crisis.

But she also said the United States must avoid plunging off a fiscal cliff of deep government spending cuts and tax increases that could cause another recession and harm the global economy.