WASHINGTON (AFP) - European levels of government debt have hit danger levels and vigorous action will be needed to get them down again, the International Monetary Fund warned on Tuesday. The IMF, fresh from a trillion=dollar European debt bailout package with Brussels, said debt levels had to be reduced and national budgets brought back into balance over the medium-term. Radical action in the short-term had to be avoided as it risked a relapse into recession, the IMF said in a report on Europe. However, sustainability indicators are flashing warning signs over public debt levels in most countries and sizable (fiscal) consolidation efforts are needed in the medium-term, it said. For countries with already low fiscal credibility, more immediate consolidation is a must, it said in a press statement. The debt and budget problems arise while Europe is seeing only a modest and uneven recovery take hold driven by an upturn in global trade and supported by government stimulus measures, the IMF said. The performance in Europe is particularly weak when compared with other regions, it said, adding that it expected faster growth over 2010-2011 even if traditional growth sectors may not be as strong as previously. The IMF forecasts European growth of one percent this year and 1.5 percent in 2011, led by France with 1.8 percent and Germany with 1.7 percent. Consumption and investment was weak given the dampening effect of rising unemployment while bank credit continued tight due to problems persisting at the banks after the global financial crisis. Against this backdrop, government policy has to remain supportive for the European economy to help the recovery gather pace, it said, while at the same time cautioning that budgets have to be kept tight. On Monday, the European Union agreed to provide two-thirds of a 750-billion-euro bailout package, with the IMF putting up the remainder, in an effort to stamp out a growing debt crisis threatening to sink the eurozone. The crisis was initially driven by massive debt and budget deficit problems in Greece but then spread to other eurozone members such as Spain, Portugal and Ireland whose public finances have come under intense pressure. All four countries have been forced to cut public spending sharply as a result and face years of tight budgets before books can return to balance.