US treasury chief says markets want action from EU

26th May 2010, Comments 0 comments

US Treasury Secretary Timothy Geithner praised the European Union's attempts to resolve the crisis in the eurozone Wednesday, saying they had the "right elements" but warning markets want to see "action."

"The European leaders have put together a very strong program of reforms on the fiscal side and a very strong commitment to help those countries manage challenges, and they are moving to put that into place," Geithner told reporters in London, after talks with British finance minister George Osborne.

"I think it has the right elements, and they again have strong political commitment to, not just in Germany, but across Europe, to make it work, and I believe they'll do what's necessary to make it work."

He added: "Obviously markets want to see action, they want to see governments come together and act and follow through on that."

Europe has fallen victim to a sharp fall in confidence on financial markets because of spiralling debt and deficits levels.

Several countries including Greece, Italy, Portugal and Spain, have announced cost-cutting measures in recent weeks in a bid to end the crisis.

Geithner also welcomed the new British government's "compelling fiscal plan" for tackling the country's record deficit, which Prime Minister David Cameron has made a priority since taking office two weeks ago.

Osborne unveiled plans Monday to cut some 6.2 billion pounds (7.2 billion euros or 8.9 billion dollars) in "wasteful" spending.

- Dow Jones Newswires contributed to this report -

© 2010 AFP

0 Comments To This Article