On the eve of a recent European Central Bank (ECB) meeting, the U.S. has stated that eurozone policymakers must take more resolute decisions to solve the region’s debt crisis. The U.S. has proposed that the region lower its troubled members' borrowing costs. Timothy Geithner, U.S. Treasury Secretary, has bluntly stated that the eurozone needs to decrease interest rates in the countries that are reforming and ensure that those banking systems can provide the credit those economies require.
While, Mario Draghi, President of ECB, says that what they have in mind is a possible intervention through European Financial Stability Facility, European Stability Mechanism and the ECB. Sources reveal that this intervention will not occur until Draghi gets the Governing Council’s approval.