Europe has firepower to addrress debts-US official

Europe knows it must do more to persuade financial markets it is coming to grips with its debt problems but there is no question it has the financial firepower to do so, a senior U.S. official said on Friday.


Speaking on condition of anonymity after a day-long meeting of Group of Seven financial chiefs, the U.S. official said there had been a heavy focus throughout the sessions on Europe's debt woes.


The official said Europe was eager to assure markets it could handle the debt problems and said there was no question that they had essentially unlimited capacity to address any funding needs of European banks.

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