Bloomberg News

Geithner to Meet European Officials in Poland on Sept. 16

September 13, 2011

(Updates with Swagel, Geithner comments in the fourth paragraph.)

Sept. 12 (Bloomberg) -- U.S. Treasury Secretary Timothy F. Geithner will travel to Poland on Sept. 16 to participate in a meeting of European government finance officials trying to contain the region’s debt crisis.

Geithner will attend the session of Europe’s Economic and Financial Affairs Council, or Ecofin, and the Eurofi Financial Forum in Wroclaw, Poland, the Treasury said in a statement today. Geithner will discuss with his counterparts efforts to contribute to the global economic recovery and cooperation on financial regulatory changes, according to the statement.

The trip will be Geithner’s second to Europe in a week. He returned to Washington on Sept. 10 from a Group of Seven finance ministers and central bankers meeting in Marseille, France, that was dominated by discussions about the euro-region crisis.

It’s “unusual” that Geithner will attend the sessions, said Phillip Swagel, who was an assistant Treasury secretary for economic policy in the George W. Bush administration, in an interview today. “I can’t think of when a Treasury secretary has gone to the Ecofin,” he said. Swagel is a professor of international economic policy at the University of Maryland in College Park.

Geithner told Bloomberg Television in a Sept. 9 interview in Marseille that European nations will “have to demonstrate to the world they have enough political will.”

The cost of crisis will be higher for European nations “if they were to sit here and do nothing,” Geithner said. “This is a good, sensible financial calculation for them that the overall costs for their economy in the long term will be less if they act more forcefully now.”

The G-7 finance chiefs vowed to support banks and try to bolster slowing economic growth.

“We will take all necessary actions to ensure the resilience of banking systems and financial markets,” the officials said in a Sept. 9 statement. “Concerns over the pace and future of the recovery underscore the need for a concerted effort at a global level in support of strong, sustainable and balanced growth.”

--With assistance from Peter Cook in Washington. Editors: Brendan Murray, Michael Heath

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net.

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net


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