Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Geithner: EU can contain crisis

Friday, September 16, 2011 - 02:36

Sept 16 - U.S. Treasury Secretary Timothy Geithner meets with EU finance ministers in Poland, urging them to work closely together and with the United States to contain debt crisis. Kirsty Basset reports.

▲ Hide Transcript

View Transcript

Europe has the capacity to contain its debt crisis - but must choose to do so. That was the message from U.S. Treasury Secretary Timothy Geithner, at a gathering of EU finance ministers in Poland. He also called on European leaders to work together - and stop what he called 'loose talk' about dismantling euro institutions. Eurogroup Head Jean-Claude Juncker seemed to be taking note. (SOUNDBITE)(English) CHAIRMAN OF THE EUROGROUP, JEAN-CLAUDE JUNCKER SAYING: "I insisted upon my colleagues to be as disciplined as possible when we are expressing our views." Geithner reportedly urged European finance ministers to look at leveraging the euro zone's bailout fund - the EFSF - to give it more clout - amid calls the fund should be increased to give markets confidence the crisis can be contained. EU leaders wouldn't comment. (SOUNDBITE)(English) HEAD OF THE EUROGROUP, JEAN-CLAUDE JUNCKER SAYING: "I don't think it would be wise for me to report from an informal meeting we had with the U.S. Secretary. Different points were mentioned. It was not a decision-taking meeting we had with Tim. It was a dialogue amongst friends." Nonetheless, Juncker said euro zone governments would push ahead with decisions taken on July 21 to resolve the crisis, which includes making the bailout fund more flexible. The progress of one of the recipients of that fund - Greece - was firmly on the agenda. (SOUNDBITE)(English) HEAD OF THE EUROGROUP, JEAN-CLAUDE JUNCKER SAYING:(SOUNDBITE) (English) LUXEMBOURG PRESIDENT AND CHAIRMAN OF EUROGROUP, JEAN-CLAUDE JUNCKER, SAYING: "We welcome the renewed, firm commitment from the Greek authorities to fully and decisively implement the adjustment." European Monetary Affairs Commissioner Ollie Rehn pushed the idea of eurobonds ahead, saying a feasibility study on the options for issuing common debt - will be presented this autumn. But in Germany, the idea was again rejected by Chancellor Angela Merkel. (SOUNDBITE) (German) GERMAN CHANCELLOR ANGELA MERKEL, SAYING: "I have put forward my way of finding a solution and I will make it absolutely clear, which solution won't happen with me, with the government and that is the collectivising of the debts in the hope that everything is going to be better then. There will not be euro bonds, Ladies and Gentleman." Back in Poland, markets weren't impressed - and the euro fell after finance ministers failed to announce fresh measures to tackle the ongoing crisis. Kirsty Basset, Reuters.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Geithner: EU can contain crisis

Friday, September 16, 2011 - 02:36