The IMF said that Greece Portugal and Ireland should stick to their austerity measures and the whole euro zone should make more effort to regain the lost confidence, it also recommended a significant strengthening of economic governance.

The IMF estimates that the 17 member euro zone will see economic growth of 2% this year higher than the previous expectation but that will fall to 1.7% in 2012, lower than the May estimate of 1.9%.

The IMF says that most euro zone countries are enjoying solid economic growth trying to resolve imbalances such as high debt and financial market tensions which pose a key risk to the outlook.