May 21, 2013
Geithner urges EU act forcefully to contain crisis
Treasury Secretary Timothy Geithner called on European leaders to do more to contain the escalating debt crisis in Europe.
"What Europe obviously needs to do is to act more forcefully to contain the risk of an escalating crisis in Europe," Geithner told CNBC television. "They have the capacity to manage this in a way that does not add to the broader burdens of the global economy."
Last week, Europe's banking authority said that eight banks would have to raise more capital after failing a test of their ability to withstand a long recession.
Geithner said EU leaders were taking steps to contain the crisis, such as making it clear they will stand behind their banking system and trying to take the risk of a disorderly default off the table completely.
But Geithner said more needed to be done.
"Those things are all constructive, but the world needs to see European leaders ... take advantage or put in place those additional changes that will help contain the risk of a broader crisis," he said.