Timothy Geithner Urges Politicians To End 'Loose Talk' To Restore Stability To Eurozone

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TIMOTHY GEITHNER
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US Treasury Secretary Timothy Geithner has urged European governments and the central bank to "work together" to restore stability as Washington grows increasingly alarmed over the debt crisis gripping the region.

Geithner's attendance at the Ecofin meeting in Poland on Friday was the first time a US treasury secretary had appeared at the regular briefing of European Union finance ministers.

He said the US was committed to seeing a stable Europe but warned politicians to end "loose talk".

"Governments and central banks have to take out the catastrophic risks from markets ... [and avoid] loose talk about dismantling the institutions of the euro."

He said: "What is very damaging from the outside is not the divisiveness about the broader debate, about strategy, but about the ongoing conflict between governments and the central bank, and you need both to work together to do what is essential to the resolution of any crisis".

Geithner's words come after Britain's Chancellor George Osborne warned time was running out to restore order to the eurozone.

In a speech delivered on Friday morning, before flying out to the meeting in Poland, Osborne said he would be "looking for my Eurozone colleagues to send a clear signal that they truly recognise the gravity of the situation and are dealing with it. Time is short. The Eurozone must now."

However Osborne said he was confident the UK could "weather the storm".

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