Geithner to EU: ’Get On With’ Crisis Response
By Ian Katz - Sep 27, 2011 11:24 AM GMT+0800
U.S. Treasury Secretary Timothy F. Geithner
U.S. Treasury Secretary Timothy F. Geithner predicted that European governments will step up their response to their region’s debt crisis after a chiding from counterparts around the world.
“They heard from everybody around the world” in Washington meetings last week, Geithner said on ABC’s “World News With Diane Sawyer” program. Europe’s crisis is “starting to hurt growth everywhere, in countries as far away as China,Brazil and India, Korea. And they heard the same message from us they heard from everybody else, which is it’s time to move.”
Geithner’s remarks maintain pressure on Europe ahead of finance minister and central bank gatherings next week and a decision on whether to disburse a loan Greece may need to avoid default. Speculation that rescue efforts will be strengthened spurred a rally in stocks even after Dutch and Finnish officials said they won’t boost commitments to a euro-area bailout fund.
Europe has “some time, but not very much time,” Geithner said in the interview late yesterday. “If you listen carefully to what they said this weekend, not just to us in private, but what they said publicly, they’re foreshadowing now the escalation that’s going to come. And we’d like them to get on with it.”
The MSCI Asia Pacific index of stocks gained 2.9 percent as of 11:48 a.m. Tokyo time, after national benchmark indexes rallied yesterday in all 18 western European markets except Greece and Norway. Futures contracts on the U.S. Standard & Poor’s 500 Index advanced 0.3 percent. The euro headed for a third session of gains, up 0.2 percent at $1.3554.
Europe’s Pledge Euro-region finance chiefs committed at a gathering of the Group of 20 in Washington Sept. 22 to boost the flexibility of their rescue fund and “maximize its impact” by the time of the next G-20 conclave. Euro-area finance ministers meet Oct. 3. European Central Bank officials have indicated they will consider expanding liquidity provisions when they meet Oct. 6.
Geithner set the tone at the annual meeting of theInternational Monetary Fund and World Bank by warning that failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” That gathering followed the G-20 session.
People’s Bank of China Governor Zhou Xiaochuan said at the talks that the euro-area crisis “needs to be resolved promptly.” Japan’s Finance Minister Jun Azumi said many G-20 members urged Europeans to implement a July plan to expand powers of the European Financial Stability Facility.
Japan Aid Azumi told reporters in Tokyo today that Japan may weigh expanding its support to Europe through a regional bond fund if nations implement their pledged fiscal measures.
European leaders “recognized the need to escalate,”Geithner said in the ABC interview. “They’re going to have to put a much more powerful financial framework behind this. I really believe that you’re going to see them do that, but we wanted to make sure they do it as quickly as they can and as definitively as they can.”
German Chancellor Angela Merkel said Sept. 25 that euro-region leaders must erect a firewall around Greece to avert a cascade of market attacks on other European states and said expanding the powers of the region’s rescue fund, known as the EFSF, was necessary to avoid contagion.
The challenge of debt sustainability in Europe is in part a consequence of the 1999 inception of the euro as a single currency, the U.S. Treasury chief signaled.
Euro’s Legacy European governments took advantage of the lower interest rates “that came with monetary union, and they borrowed a lot. And they spent too much. And the governments got very big. Benefits got very generous,” he said.
Turning to the U.S., Geithner said “there’s a very good chance” Congress will approve President Barack Obama’s $447 billion jobs proposal. The plan, incorporating payroll-tax cuts and a $105 billion infrastructure program, is designed to help pull down the nation’s 9.1 percent unemployment rate.
The European crisis “hurts us not just because it means that growth around the world will be slower and we’ll export less, but it hurts people very directly and very quickly when stock prices fall and the value of their pensions fall,”Geithner said on ABC. “It makes people more tentative. And that’s why it’s so important to us that they move.”
Each time when a crisis come and the government bailout, I always feel that those kinds of plans will bring bigger crisis later. If we want economy to real recover, we need to let the crisis do itself. But if we do this, the cost of doing so is too vast. Now I also don’t know how to make this choice.
尝试着用英文回复，各位大侠多指点一下语法、用词方面的错误啊
to pay the dabt greek has to increase the fiscal income.which means a shift of policies that would lead to outrage of the public,as can be seen from the upheavals during previous monthes.european it seems that european countries prefer to shirk responsibility rather than coordinat with each other,which is a bad thing for doing business.
The European crisis “hurts us not just because it means that growth around the world will be slower and we’ll export less, but it hurts people very directly and very quickly when stock prices fall and the value of their pensions fall,”Geithner said on ABC. “It makes people more tentative. And that’s why it’s so important to us that they move.”
The European crisis “hurts us not just because it means that growth around the world will be slower and we’ll export less, but it hurts people very directly and very quickly when stock prices fall and the value of their pensions fall,”Geithner said on ABC. “It makes people more tentative. And that’s why it’s so important to us that they move.”
欧元危机之所以对我们的产生如此严重的打击，并非是因为它会使得全球经济放缓并使得出口减少，而是因为当股价下跌以及养老金价值缩水时，它会直接且迅速地影响民众，这使得民众更加踌躇不安，而这正是为何早日解决欧元危机显得如此重要的原因！
Great view！The “people” are the most significant capital supplier in the mkt. And if they don't show confidence to the mkt presence they will rather save the money but no invest stocks directly. However even in this zero intrest enterprises won't borrow money from bank as they could not guarantee that they could earn profits in several years. So I appreciate the series of measures taken by governments and waiting for their performance.
I heard about the news that Zhou Xiaochuan was awarded the Best CEO of Central Bank prize by authorised international finance magzine Euromoney. Maybe it's a sign that the world, especially the europe, wants to get help from China's financial system.
Europe union must be sel-dependent , foreign aid can't solve its own problems from the bottom.
The countries that fell into debt crisis should strengthen their fiscal discipline.
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