Christine Lagarde calls for more competition

The head of the International Monetary Fund (IMF) has called on European governments to boost the size of their rescue fund and consider financial risk-sharing steps like common eurozone bonds as a way out of their sovereign debt crisis.

In a speech in Berlin on Monday, Christine Lagarde said the world economy faced a "defining moment" that required quick, collective action.

She also called on banks to provide more credit, as well as advocating greater competition.