Geithner 'Encouraged' by Eurozone Developments

German Finance Minister Wolfgang Schaeuble (R) and US Finance Minister Timothy Geithner (L) hold a press conference in Berlin, Germany, 06 December 2011. EPA/BGNES

US Treasury Secretary Timothy Geithner has said that the latest commitments to reforms in debt-stricken eurozone countries are encouraging for recovery prospects.

Tuesday the US minister of finance has started a EU trip ahead of the key European Council set to install key treaty reforms to boost financial stability in the EU and the eurozone.

"The the eyes of the world are very much on Europe now," said Geithner Tuesday while on a visit to Germany to meet German counterpart Wolfgang Schaeuble.

The US Treasury Secretary was nevertheless quick to clarify that his country is also facing difficult times: "I want to make it clear that we face very challenging economic challenges in the US still."

Early Tuesday credit rating agency Standard & Poor's announced it has put almost the entire eurozone, including Germany and France, on "credit watch", expecting a downgrade.

German Chancellor Angela Merkel and French President Nicolas Sarkozy, who had just brokered an EU rescue plan Monday, dismissed the announcement as tactless.

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