Geithner upbeat on European reforms‎

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Geithner upbeat on European reforms‎

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A positive tone from US Treasury Secretary Timothy Geithner as he started a three-day blitz of euro zone officials.

In Europe to urge decisive action to save the euro and resolve the crushing debt crisis, Washington’s top money man said he sees “encouraging signs” from Europe.

Geithner started in Germany, at the European Central Bank, which the US would like to see take more decisive action.

Neither the American nor ECB president Mario Draghi commented on what they had discussed.

In Berlin he met Finance Minister Wolfgang Schaeuble and was upbeat afterwards, saying: “I am very encouraged by the developments in Europe over the past few weeks, including the reform commitments made by the new governments of Italy, Spain and Greece and the new steps that we have heard this week about progress towards a fiscal compact for the euro zone.”

Geithner said the proposed new treaty to strengthen the euro zone’s fiscal rules outlined by France and Germany will take time and a sustained commitment of political will.

Schaeuble said Germany is confident the decisions reached at this week’s summit will restore trust in the euro zone as a whole.

After his visit to Germany Geithner is also due to meet French President Nicolas Sarkozy as well as Spain’s Mariano Rajoy and Italy’s Mario Monti.