March 20, 20112
Europe is only at the beginning of a “very tough, very long, hard road” to recovery and its future is still a threat to the US economy, Timothy Geithner, the treasury secretary, warned on Tuesday.
In testimony to the House financial services committee on the state of the international financial system, Geithner warned against draconian spending cuts by heavily indebted countries and called on better-off European countries to help their neighbours.
“Economic growth is likely to be weak for some time. The path of fiscal consolidation should be gradual with a multiyear phase-in of reforms,” Geithner said.