Geithner Warning of ‘Catastrophic Risk’ Highlights Gap With EU - Bby Rebecca Christie

U.S. Treasury Secretary Timothy F. Geithner’s 10-hour visit to Poland ended with European counterparts rebuffing his suggested fix to their debt crisis and some taking shots at the economic woes across the Atlantic.

Geithner urged European leaders to set aside their differences to excise “catastrophic risks” from the markets. He also floated a variation of a 2008 policy he developed while at the New York Federal Reserve to expand the reach of Europe’s bailout fund that would use leverage in a partnership between euro governments and the central bank, said Irish Finance Minister Michael Noonan.

While U.S. and European officials such as Germany’s Wolfgang Schaeuble emphasized the benefits of trans-Atlantic communication, comments by Austria’s Maria Fekter and Sweden’s Anders Borg underlined a sense of mutual frustration.

For more: Geithner Warning of ‘Catastrophic Risk’ Highlights Gap With EU - Bloomberg