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Canada says worth considering more time for Europe budget cuts

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OTTAWA, Oct 11 (Reuters) - Canada tentatively backed onThursday the International Monetary Fund's call for givingdebt-burdened Greece and Spain more time to reduce their budgetdeficits.

The IMF said this week too much austerity, too quickly couldmake it harder for an economy to get out from under a heavy debtburden.

"I think it's certainly worth considering," Finance MinisterJim Flaherty told reporters on a conference call from Tokyo whenasked if he backed the IMF view.

"The challenge is the European economy is in recession, andthere is some interest in trying to create some economic growthin the euro zone. Unemployment has become quite a significantissue, particularly in Greece," he said.

(Reporting by Louise Egan; editing by Mohammad Zargham)

((louise.egan@thomsonreuters.com)(+1 - 613 - 235 -6745)(Reuters Messaging: louise.egan.reuters.net@reuters.com))

Keywords: IMF CANADA/FLAHERTY