Treasury Secretary Geithner told CNBC Wednesday that Europe can survive the current crisis if its leaders make good on commitments to turn their economies around.
“Europe has the capacity to manage this,” said Geither. “They made a decision to do it, and I believe they have the capacity to do that.”
Responding to Germany’s action on naked short-selling, Geithner said he didn’t know beforehand about the ban, but stressed that while short selling bans historically are not that good “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.”
Geithner added that neither the U.S., nor individual states, such as the troubled California, would face some of the same anomalies as Greece or Spain.
“It’s not going to happen in the United States,” he said. “The United States has a much stronger recovery than most people would have expected just three months ago. The world economy is getting stronger, too. We’ve seen very strong growth in Asia, in many emerging markets.”
