Geithner 'encouraged' by developments in Europe (by Greg Robb)

WASHINGTON (MarketWatch) - Treasury Secretary Timothy Geithner said Tuesday he is "very encouraged" by developments in the past few weeks in Europe that address the sovereign debt crisis. Specifically, he pointed to the proposed new treaty to strengthen fiscal euro-zone rules outlined Monday by French President Nicolas Sarkozy and German Chancellor Angela Merkel. "This will take time and it will take a sustained commitment of political will," Geithner said at a brief press conference with German Finance Minister Wolfgang Schaeuble. Geithner said he would not discuss what the European Central Bank "should do, or will do, or can do." "The ECB has been playing a central role in this crisis and is obviously going to continue to do that. And of course, ultimately these things only get solved by governments and central banks doing what is necessary, but their roles are different," Geithner said. The Treasury Secretary met earlier on Tuesday with ECB President Mario Draghi and Bundesbank chief Jens Weidmann.