U.S. and China to Increase Pressure on Europe

The debt crisis in Europe and the concern for the global economy dominate the annual meeting of the IMF. The U.S. and China call for a rapid solution to the problem, otherwise there could be a recession.

The U.S. and China have increased the pressure on Europe to get the debt crisis under control. The Europe must quickly find a solution, otherwise there could be a recession, driving the world economy into ruin.

U.S. Treasury Secretary Timothy Geithner urged the European Central Bank to play a central role. “The danger of bankruptcies, withdrawal of funds from banks and catastrophic risks must be dispelled,” said Geithner in unusually sharp words at a speech at the autumn meeting of the International Monetary Fund (IMF). “Otherwise, all other efforts are being undermined both in Europe and globally.”

China accuses the U.S.

Similarly, said the Chinese central bank chief Zhou Xiaochuan. He moved into the U.S. in his criticism. The United States have settled own budget crisis only recently by further raised the debt ceiling. “The debt crisis must be resolved quickly in order to win the confidence of the markets again,” said Zhou. Last week fears of recession and fear of an increase in the debt crisis had once more transferred the stock markets in turmoil.

Earlier on Friday, the president of the European Central Bank, Jean-Claude Trichet called the governments to urgently implement the decisions to strengthen the international financial architecture. “This requires determination and courage on the part of the public ahead,” said Trichet in Washington. However, private sector must play its part and ensure clarity, he warned.