Warmer words

Europeans are hardly used to so much goodwill from US Treasury Secretary Timothy Geithner.

"I am very encouraged by the developments in Europe in recent weeks," Geithner said at a Monday press conference in Berlin.

He in particular mentioned the reform efforts promised by Greece, Spain and Italy as well as the Franco-German initiative to push for stricter budget rules within the EU.

Geithner spoke to the press together with his German counterpart Wolfgang Schäuble after the two had discussed the upcoming EU crisis summit on Friday.

"The summit will bring back the trust of the financial markets in the eurozone as a whole," said Schäuble optimistically.

Germany and France want the December 9 talks to implement their plans to bolster the EU stability mechanisms and to make the bloc's permanent rescue fund ready and available already next year - rather than only by 2013 as originally intended.

The required changes to EU treaties could be made and ratified speedily, Schäuble told reporters.

Regaining trust

Geithner has not exactly been a popular guest in Europe in recent months. Many Europeans have seen it as unfair and patronizing that an American politician should be demanding more effort from them in strengthening the euro.

Geithner for instance has repeatedly called for the European Central Bank (ECB) to give guarantees for bonds issued by eurozone members. He has also pushed for the European rescue fund to be massively increased.

Both suggestions have so far been rejected - in particular by the stronger EU economies including Germany.

In September, when Geithner joined an EU finance ministers meeting and presented his ideas there, Europeans reacted almost offended. Jean-Claude Juncker, prime minister of Luxembourg and head of the euro group, said he refused to discuss increasing European rescue fund "with a non-member of the eurozone."

Austria's Finance Minister Maria Fekter said that, given the US's own massive debt problem, she thought it rather inappropriate for a US politician to "tell us what we had to do."

The role of the ECB

On Tuesday, both Schäuble and Geither steered clear of their points of disagreements. While they did discuss the European Central Bank, they where unwilling to go into any detail at the press conference. The US treasury secretary also used his visit to Germany to meet with ECB head Mario Draghi.

"The European Central Bank is playing a central role in the crisis and will continue to do so," Geithner said diplomatically. "The US will continue to support the constructive role of the European rescue fund," he added.

Germany's Schäuble assured US journalists that "everyone in Europe respects the independence of European Central Bank. You will understand that I am not going to comment on the policy or strategy of the bank."

Autor: Mathias Bölinger / ai
Redaktion: Michael Lawton