At a joint press conference in Dublin with representatives from the European Commission and the European Central Bank (ECB), Ajai Chopra, deputy director of IMF's European Department, said that there should be "prompt implementation" of any new measures.
Chopra, who was in Dublin on a third quarterly review on the progress of Ireland's compliance with the terms of their bailout, praised the Irish government, saying it has "developed a great deal of fiscal credibility" and said that Europe must now take control of the situation.
"The problems that Ireland faces are not just an Irish problem. They're a shared European problem. What we need and what's lacking so far is a European solution to a European problem," he said.
"What's critical now is for Europe to dispel the uncertainty that's being created by the lack of what's perceived by markets as an insufficient response," he added.
He also added that if Europe can introduce measures to stem the spread of the debt crisis, Ireland may be able to return to borrowing from international markets.
Chopra's team had earlier delivered a positive assessment of Ireland's progress in addressing the terms of the loan deal, saying that Ireland's program "remains on track and is well financed."
They said that Ireland's real GDP had stabilized in the year to the first quarter and modest growth is expected in 2011. They also praised progress in the restructuring of Ireland's banks which they said was "ahead of schedule."