John Lipsky, first deputy director at the International Monetary Fund, said European nations struggling with debt need to reduce their deficit after an effort to keep the sovereign-debt crisis from spreading is complete. Lipsky's comment comes after the euro gave up gains made after the EU's rescue package was announced. "The root of the problem is the fiscal situation" of Greece, Spain and Portugal, said Osamu Tanaka, a senior economist at Dai-Ichi Life Research Institute. "Plans probably won't go as smoothly as planned, and the market will probably continue to go through bouts of uncertainty."
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