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Davos summit ends with warnings on global economy

By The Associated Press

This article was published January 26, 2013 at 10:20 a.m.

— Top international financial officials wrapped up the World Economic Forum in the Swiss resort of Davos warning that much needs to be done to stabilize the world economy.

Despite relief that the euro, for all its struggles, remains intact and the U.S. has so far managed to get through a crucial budget hurdle, the International Monetary Fund’s managing director Christine Lagarde urged world leaders to “not relax.”

Lagarde said Saturday that the 17 European Union countries that use the euro have to follow through on steps to keep the troubles at banks from burdening governments.

And she said U.S. officials have to “indicate very promptly” how they’re going to deal with their ongoing budget dispute between President Barack Obama and Republicans in Congress.

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