Greece faces tough adjustment: IMF

IMF chief economist Blanchard says Greece has a long way to go and faces a tough adjustment> New stress tests are defiantly needed for Europe, he says. Greece cannot afford 16% debt, the economist says. (Will lower rates come via restructuring or a rejiggered EU bailout? That is the question.)

Also crossing the Bloomberg wire, German chancellor Merkel says all euro countries must “keep to the rules”.