Europe, under fire, seeks to get ahead of crisis

Reuters

4:40pm EDT

By Marc Jones and David Lawder

WASHINGTON (Reuters) - European policymakers showed signs they were preparing new steps to cope with the region's debt crisis even as talk of a possible Greek default gained pace on Friday.

World stock markets, which had plunged to a 14-month low on fears the euro zone crisis was not under control, steadied after European Central Bank officials said they would use their firepower to help the banking system through the crisis.

Geithner to Take Crisis Message to Europe Talks

Bloomberg

U.S. Treasury Secretary Timothy F. Geithner plans to urge European Union finance ministers to step up their crisis-fighting strategy when he meets with them this week in Poland, a euro-area official said.

The official spoke on condition of anonymity because preparations for the meeting, which takes place in Wroclaw, Poland, on Sept. 16 and 17, are confidential. It will be the first time Geithner has attended a session of Europe’s Economic and Financial Affairs Council, known as Ecofin.

The World Isn't Up to Global Coordination

The Wall Street Journal

By PAUL HANNON

The global economic crisis seemed very far away as the sun blazed down on Marseille's old port Friday. But such is the depth of the gloom surrounding the economic outlook, finance officials from the Group of Seven leading developed economies must have envied the carefree souls piloting their yachts out of the harbor and onto calm blue seas.

G-7 Seeks to Avert Collapse in World Confidence

Bloomberg

By Toru Fujioka - Aug 8, 2011

Group of Seven nations sought to head off a collapse in investor confidence after the U.S. sovereign- rating cut and a slump in Italian and Spanish debt intensified threats to the global economy.

G-7 finance ministers and central bank governors pledged in a statement to “take all necessary measures to support financial stability and growth.” Officials will inject liquidity and act against disorderly currency moves as needed, they said after a call late yesterday European time. The G-20, which includes emerging markets, issued a similar communique.