Tokyo ( CNN ) -- Big divisions are appearing among the key players responsible for the eurozone 's tough austerity program . The International Monetary Fund and the European Commission are at odds over which is the best way forward . As millions of Europeans feel the biting impact of austerity measures , IMF boss Christine Lagarde says it 's time to hit the brakes . German Finance Minister Wolfgang Schäuble says changing directions now would lead to a critical loss of confidence in the whole plan . And European Commission Vice President Olli Rehn says the IMF 's findings `` can be disputed . '' It started on Monday when the IMF said that specific debt reduction targets , which underpin most of the austerity programs in place across recession-ravaged Europe , have a much deeper impact that expected . New IMF research says that pruning a budget deficit by one percentage point could mean a cut in economic growth of between 0.9 % and 1.7 % . That is up to three times more severe than the current economic models suggest . In other words , debt reduction is having a much more severe affect on growth than first thought . It 's led Lagarde to say that the austerity programs should not focus on specific targets and that countries should be given more time to cut their debt . Schäuble shot back the next day . He told the Financial Times `` when there is a certain medium-term goal it does n't build confidence when one starts going in a different direction . '' `` When you want to climb a big mountain and you start climbing back down the mountain , then the mountain will get even higher , '' he said . Next to weigh in was Olli Rehn . He told me today that he was not yet buying the IMF argument . `` The findings can be disputed and I am looking forward to extensive negotiations on this , '' he said . `` Even the IMF can be open to criticism -- it does not have the final word . '' So , a needed debate or a dangerous split ? Rehn , ever the diplomat , says he sees this as a sign of `` healthy policy debate over the right course of action . '' But he does support the German view . `` He ( Schäuble ) has a point . The EU can not be making swift turns , rather it is a convoy and you have to carefully consider which policy turns are best . '' The EU will produce its own conclusions about the impact of austerity measures next month . Whether that brings us any closer to a consensus is hard to judge . Remember the old joke about economists : if you laid all the economists in the world end-to-end you still would n't reach a conclusion . But this is no joking matter . Millions of Europeans have fallen into poverty or at least economic hardship as a result of the current austerity programs . Getting the right mix of policies to deal with the crisis not an option , it 's an imperative .
Divisions are appearing among key players responsible for the eurozone 's austerity program . International Monetary Fund and the European Commission at odds over best way forward . IMF wants to give Greece more time after a new study suggest austerity is hurting growth . Score: 6