Geithner Says Europe Debt Crisis Poses Risk to Global Growth

U.S. Treasury Secretary Timothy F. Geithner will tell lawmakers that the European financial crisis is increasing the risks to global growth, according to testimony prepared for delivery tomorrow.

“Our direct financial exposure to those governments and their financial institutions is quite small, but Europe is so large and so closely integrated with the U.S. and world economies that a severe crisis in Europe could cause significant damage by undermining confidence and weakening demand,” Geithner says in testimony to the House Financial Services Committee.