The United States raised pressure on euro zone leaders to take decisive action to solve the region's debt crisis, notably by lowering troubled members' borrowing costs, on the eve of a crucial European Central Bank meeting.
U.S. Treasury Secretary Timothy Geithner said the euro zone must take steps including "bringing down interest rates in the countries that are reforming and making sure those banking systems can provide the credit those economies need".
He made the comments in an interview with Bloomberg Television recorded in Los Angeles on Tuesday, a day after he flew specially to Germany to meet Finance Minister Wolfgang Schaeuble and ECB President Mario Draghi. The interview was broadcast on Wednesday.
Italy and Spain, the euro zone's fourth and third largest economies, risk losing access to credit markets as the risk premium investors demand to hold their bonds rather than safe-haven German debt has spiraled to levels considered unsustainable in the long term.
Draghi last week said that the central bank would do whatever it takes to preserve the euro, stirring speculation it might take more radical steps when the ECB's policy-setting Governing Council holds its monthly meeting on Thursday.
Geithner said Schaeuble and Draghi had walked him through plans they were putting in place to try to solve the crisis, but he cautioned against expecting immediate action.
Read more: http://www.reuters.com/article/2012/08/01/us-eurozone-idUSBRE8700AZ20120801
No comments:
Post a Comment