IMF: Sov Debt crisis in euro zone periphery threathens to overwhelm recovery

• ECB should proceed gradually on rate normalization
• Unconventional measures should remain in place until market tensions have been addressed
• EFSF must be scaled up and extended;
• Much more to do to secure resilient monetary union

The IMF reminds that this is a high stakes game and warns the ECB to go slow on rate hikes and taking away its unconventional punch bowl.