Christine Legarde, the Chief of the International Monetary Fund (IMF) said in Berlin that the global economy could slip back into a 1930s moment unless European nations intervene and resolve the escalating debt crisis which is dampening growth and the recovery across the globe.

The chief also urged the United States and China to play a bigger role and to take responsibility towards the economy.

Lagarde said at the German Council on Foreign Relations, according to her speech text that what we must all understand is that this is a defining moment, and added it is not about saving any one country or region. It is about saving the world from a downward economic spiral. It is about avoiding a 1930s moment, in which inaction, insularity and rigid ideology combine to cause a collapse in global demand.