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In an interview with CNBC-TV18, US treasury Secretary Timothy Geithner spoke about the situation in Europe, whether it would hurt the nascent US recovery and how much of the burden of growth then rests on China.
In an interview with CNBC-TV18, US Treasury Secretary Timothy Geithner spoke about the situation in Europe, whether it would hurt the nascent US recovery and how much of the burden of growth then rests on China.
Here is a verbatim transcript of an exclusive interview with Timothy Geithner on CNBC-TV18. Also watch the accompanying video.
Q: The big news everyone is talking about is what happened in Germany. With the planning of certain kinds of short selling, betting that bonds and stocks would go down. What do you think about it? Did you have any idea that that was going to happen?
A: No. The most important thing for Europe to do now, Germany and all the countries in Europe, is to go ahead and put in place the program they announced, whether it's the program of providing reforms. So this economy can grow going forward, with some financial support for countries in need. The most important thing for them to do is go ahead to move to put that program in place.
Q: Do you think they are going to do that? I know there are a couple key votes that need to happen. Do you think they will put it in place?
A: I do.
Q: You have been obviously an advocate of do something big. Is a trillion dollars big enough?
A: Well, again, they will put this in place, because it's very important to them. They committed and they have to follow through now. Of course, you know, people want to see them act. That happens everywhere, so it's a natural thing. They would want to put in place and they have got the capability to do it. Again, what matters ultimately is not what not so much what you say but what you are prepared to deliver. What matters is the policies that provide economic reform help Europe go faster in the future.
Q: Do you think it's big enough?
A: They made a very clear, unequivocal statement. The leaders of Europe stood together and they say, we will make sure that we help these countries through this mess. Absolutely, they have the ability to do that. They just need to go ahead and put the reforms in place.
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