The International Monetary Fund Managing Director Christine Lagarde's call for recapitalization of European banks is "incomprehensible", Laurence Parisot, head of France's business lobby MEDEF, said on Tuesday.

French banks are well capitalized and are very strong, Parisot said in an interview with Europe 1 radio. She pointed out that the financial crisis of 2008 was due to U.S. banks and not European ones.

Speaking at Jackson Hole on Saturday, Lagarde said European banks need urgent recapitalization. She called for a mandatory substantial recapitalization—seeking private resources first, but using public funds if necessary. European officials were quick to criticize her comments.

Parisot also said the situation in Europe was not as worse as in the U.S. and expressed complete confidence in the euro area. Regarding the French government proposal to impose more tax burden on the rich, she said all those who are wealthy must contribute during difficult times.

RTTNews