US official: Europe making gradual progress

16 November 2011

Europe is taking steps towards coming up with a resolution for its ongoing debt crisis, a leading US official believes.

Timothy Geithner, Treasury secretary, feels nations in the eurozone are gradually getting to grips with exactly what is required from hem to combat this continuing problem - but added that member states still face several complications.

Mr Geithner said the region's "basic challenge" is centred on how it is going to "stabilise [its] financial system" and help embattled countries such as Italy and Spain get to a position where they can borrow at sustainable rates, Reuters reports.

However, the official went on to indicate this objective must be complemented by further measures to make growth stronger across the continent.

"This is absolutely within Europe's capacity to solve and it's within their ability. It's within their grasp, it's within their reach," he added.

Recently, research by the Federal Reserve Bank of San Francisco indicated that the eurozone crisis means America is more likely than not to experience another recession next year.

By Claire Archer

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