NUSA DUA, Indonesia, Oct 12 (Reuters) - Too many euro zonecountries are missing the opportunity to reduce debt now, wheneconomic growth is good, to prepare for the next economicdownturn, the head of the International Monetary Fund's Europeandepartment Poul Thomsen said."Fiscal policy has been insufficiently counter-cyclical,"Thomsen told a news conference at the IMF's annual meetings inBali, Indonesia, noting this was his main message the Europe.He said those countries were actually increasing theirnominal budget deficit, despite the economic good times.He did not name Italy specifically, but made a clearreference to it by saying that highly indebted countries in theeuro zone were of particular concern, because once the downturncame, the lack of fiscal space to counter it could result in arecession."They need to reduce debt during the good times to havespace during the bad times," Thomsen said. (Reporting By Jan Strupczewski and Francesco Canepa)
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