IMF chief Christine Lagarde said Saturday that the refugee crisis had pushed Europe to a "make or break" point and endangered the EU's cherished passport-free Schengen area.

"The refugee crisis is a bit of a make or break, from my personal perspective," Lagarde said at the World Economic Forum in the Swiss ski resort of Davos. Asked if it put in peril Schengen, she said: "Yes, I think so."