Oct. 15 (Bloomberg) -- U.S. Treasury Secretary Timothy F. Geithner said Europe’s developing plan to beat its fiscal crisis contains the “right elements.”
“We heard encouraging things from our European colleagues in Paris about a new comprehensive plan to deal with the crisis on the continent,” Geithner said in a statement after Group of 20 finance chiefs met today.
The strategy includes a bigger “firewall” to ensure European governments can borrow at sustainable interest rates, a recapitalization of banks, further support for a sustainable program in Greece, and steps toward fiscal union, Geithner said.
“The leaders of Germany and France have committed publicly to put this framework in place over the next two weeks, before the G-20 leaders convene in Cannes,” Geithner said. “They clearly have more work to do on the strategy and the details, but when France and Germany agree on a plan together and decide to act, big things are possible.”
Geithner said the International Monetary Fund has substantial resources and the U.S. would back the use of them to help Europe.
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