US demands action from Europe's strongest at G7

The United States pressed Europe's strongest economies today to give "unequivocal" financial support to weaker euro zone states to overcome a debt crisis that threatens the world economy.

"It is completely within the capacity of the stronger members of the euro area to absorb these costs," US Treasury Secretary Timothy Geithner said as G7 finance chiefs gathered in Marseille to discuss how to revive a stalling recovery.

"Those costs would be much, much greater for them and their economies if they sit here and do nothing, and they recognize that," Geithner told Bloomberg Television in comments that appeared aimed primarily at EU economic powerhouse Germany.

Ministers and central bankers were under pressure to calm the biggest confidence crisis in financial markets since the 2007-8 global credit crunch.

But a shock announcement that the top German official at the European Central Bank is leaving early in disagreement with the bank's policy of buying euro zone government bonds to support the likes of Italy and Spain laid bare deep rifts over how to manage the debt crisis.

France has called for a coordinated response from the Group of Seven industrialized nations after mounting anxiety over Europe's debt crisis and the fragility of its banks caused a big fall in world stock markets in recent weeks.