Europeans are making progress to overcome the euro zone crisis but need to do more to boost their financial firewall, International Monetary Fund Managing Director Christine Lagarde said on Saturday, Jan 28, adding that the IMF is also ready to help.

"There is work under way. There is progress as we see it," Lagarde told a panel discussion at the World Economic Forum.

"But it is critical that the euro zone members actually develop a clear, simple, firewall that can operate both to limit the contagion and to provide this sort of act of trust in the euro zone so that the financing needs of that zone can actually be met."

Lagarde, who made a strong plea in Berlin on Monday for a bigger firewall, added there would be need for IMF funds to help the euro zone, Reuters reported.