US Treasury Secretary Timothy Geithner played down talk today of differences with Europe on spending cuts but stressed that US consumers could no longer support the global economy alone.
'We all understand and we all agree that part of global recovery, part of making sure our economies are growing is to commit to clear objectives for reducing our fiscal positions to sustainable levels over the medium term', Geithner said.
He made his comments after talks with German Finance Minister Wolfgang Schaeuble in Berlin today. 'We are going to get there at somewhat different paces, the magnitude of adjustment will differ, as we all come to this from different positions, with different underlying growth rates, different overall debt burdens,' he added.
Alongside Greece, Portugal and Spain - all of whom have seen their borrowing costs rise sharply in recent months as investors fret over their solvency - other EU members like Italy and Britain have also announced austerity measures.