Europe

Carstens: Europe must face its debts

Lessons learnt from emerging markets demonstrate that Europe's troubled economies have no choice but to face up to their fiscal over-extension, according to Agustin Carstens, Mexico's central bank governor and candidate to be head of the Intenational Monetary Fund. He talks to the FT's John-Paul Rathbone about Europe's economic problems and the economic impact of Mexico's war on drugs.