June 5, 2012 / 3:44 PM / 5 years ago

G7 discusses EU fiscal union progress -US Treasury

WASHINGTON (Reuters) - Finance ministers from the Group of Seven major economies discussed progress towards financial and fiscal union in Europe, the U.S. Treasury Department said on Tuesday, after the ministers held an emergency call on the euro zone debt crisis.

"The G7 ministers and governors reviewed developments in the global economy and financial markets and the policy response under consideration," the U.S. Treasury said in a statement.

The U.S. Treasury did not elaborate on whether a consensus was emerging among European leaders for a specific plan of action, or whether the G7 was considering a joint response to the EU crisis which has intensified with distressed Spanish banks threatening the global financial system.

The finance ministers discussed Europe's progress towards "financial and fiscal union" - an idea the European Central Bank has urged euro zone leaders to consider, the U.S. Treasury said.

Amid concern Europe's debt crisis could endanger the fragile U.S. economic recovery, the Obama administration has said that the EU needs to take further steps to convince markets it has done enough to tackle its financial problems.

The U.S. Treasury said finance ministers agreed to monitor developments closely ahead of the G20 meeting June 18-19 in Mexico.

"I think that obviously, Europe's problems are first and foremost for Europe to address, but clearly we live in an interdependent world and the outlook for the world economy is impacted by Europe; Europe is clearly a key risk," Mark Sobel, the Treasury Department's senior deputy assistant secretary for international affairs said at an event Thursday in Washington.

Reporting by Rachelle Younglai. Editing by Bernadette Baum

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