MEXICO CITY, Feb. 27 -- The eurozone has made remarkable progress in fighting the debt crisis, but should build its own more credible financial firewall as soon as possible, U.S. Treasury Secretary Timothy Geithner said here Saturday.
"Europe is making quite a bit of progress in convincing the world that they are not going to allow a catastrophic financial failure in the continent," said Geithner, ahead of the G20 finance ministers and central bank governors meeting held here. However, Geithner stressed the progress hadn't been enough to solve the debt crisis. "Now they are not down, they know they have more work to do." He also urged Europe to "put in place a stronger, more credible firewall," although "it is not a short-term thing."
Building the firewall is a fundamental, deeply consequential economic issue and deserves the world focus now, he said.
The G20 financial meeting will discuss how to strengthen the support mechanism of the International Monetary Fund (IMF) against the eurozone debt crisis.
But analysts say it is hard to reach an agreement in the two-day meeting as divergences among the G20 countries on the issue can't be resolved in the near future.
The European Union (EU) has urged the international community to pump more money into the IMF, but some members of the G20 including the United States opposes to the proposal as they think the resources of the IMF can not substitute a healthy and strong European rescue fund.
Geithner said he was very confident that the world would make sure that the IMF has sufficient resources to deal with the debt crisis, but the eurozone should build its own firewall in the first place.