US ‘encouraged’ by Europe’s plan to stem financial crisis

Associated Press

LOS CABOS, Mexico

Seeking to sooth global economic fears, U.S. officials said they were encouraged that European leaders appeared ready to undertake a more- forceful response to the continent’s crippling debt crisis while still focusing on much-needed growth.

Treasury Secretary Timothy Geithner, speaking Tuesday at the close of the Group of 20 summit, said Europe was nearing key decisions aimed at stabilizing the eurozone.

Those steps, he said, include a stronger framework to strengthen the continent’s financial system and helping countries such as Spain and Italy borrow at sustainable interest rates.

“We’re encouraged by what we heard from the European leaders today and by the broad focus around the world; we’re seeing to the need to strengthen economic growth,” Geithner said.

Geithner spoke after President Barack Obama’s private meeting Tuesday with the leaders of Britain, Germany, Italy, France, Spain and the European Union.

The continent’s leaders were to outline the specifics of their plans during a summit in Brussels next week, a meeting Geithner called “critical.”

A senior U.S. official said Europe would offer a “more forceful response” than they have contemplated to date during the Brussels summit.