Geithner: Markets want action on EU stability plan

LONDON (BestGrowthStock) – Treasury Secretary Timothy Geithner said that financial markets wanted to see more detail about how a $1 trillion EU/IMF plan to provide back-up financing for euro zone governments would work in practice. “It’s a good program (and) has got the right elements. What markets want to see is action,” Geithner said at a joint news conference in London on Wednesday with his British counterpart George Osborne.

The fund aims to provide assistance to euro zone governments if they have difficulty raising debt from capital markets, and was launched at the start of the month due to worries Greece might default on its debt.

European leaders had put through a strong fiscal program as part of a broader program to stabilize markets, Geithner added.

Osborne said that he was happy that other European states agreed on the need for a bank levy to fund the cost of future bailouts, and reiterated Britain’s position that the funds raised should be treated as general taxation rather than saved until a crisis happens.

Money

(Reporting by Glenn Somerville and Sumeet Desai, writing by David Milliken)

Geithner: Markets want action on EU stability plan