The head of the International Monetary Fund called for "decisive steps" by European policymakers to deal with the region's financial crisis and said carbon taxes could deliver more revenues for countries worldwide with budget constraints.

International Monetary Fund:国际货币基金组织

In a speech on Tuesday focused on the upcoming Rio+20 earth summit in Brazil on June 20-22, IMF Managing Director Christine Lagarde said economic and financial stability was critical to addressing global environmental challenges.

Rio+20 earth summit:里约+20峰会(联合国可持续发展大会)

The summit, 20 years after the original Rio Earth Summit that led to the Kyoto Protocol on capping greenhouse gas emissions, comes amid a faltering global economy and deep concerns over Europe's financial future.

Kyoto Protocol:京都议定书

greenhouse gas:温室气体

"We need a strategy that is good for stability and good for growth - where stability is conducive to growth and growth facilitates stability," she told an event of the Washington-based Center for Global Development.

conducive to:有益于…

"This must start with advanced economies, especially in Europe. Policymakers need to take decisive steps to break free of the crisis," she added.

Policymakers should aim for a combination of "very accommodating" monetary policy, use of common resources to provide direct support to banks and growth-friendly policies where fiscally possible.

very accommodating monetary policy非常宽松的货币政策

The euro zone crisis has intensified since last month as worry grew among investors about the possibility of Greece leaving the single currency.

Lagarde said fiscal stability meant governments in advanced economies should outline credible medium-term plans to lower public debt. Without such a plan, countries might be forced to make bigger adjustments sooner, she cautioned.

Developing economies were holding up relatively well, she said, but could "face a cold chill" if global conditions worsened. "Those with fiscal space should prepare to use it, especially if conditions continue to deteriorate," she added.

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