Lagarde Warns EU Leaders of Market Risks if No Stimulus Deal

(Bloomberg) -- European Central Bank President Christine Lagarde warned national leaders that the recent calm in financial markets is in part because investors have priced in action from governments.

Lagarde said that if European Union member states fail to reach an agreement on funding the economic recovery then sentiment could shift, according to officials familiar with her comments on a videoconference.

Leaders are holding their first discussion on the 750 billion-euro package Friday with Germany and France pushing for the deal to be wrapped up by next month.

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