U.S. supports IMF's role in Europe: Treasury official

Reuters (16/7) - The United States supports the role of the International Monetary Fund in helping the euro zone restore financial stability, a senior U.S. Treasury official said on Monday. Brainard spoke ahead of this weekend's meeting in Moscow of finance ministers and central bank chiefs from the Group of 20 leading economies. Europe's slow path to recovery is likely to be a focus of discussions, as well as possible risks in emerging markets and slower growth in China. The IMF began a partnership with European institutions several years ago to help stem the debt crisis in Europe and prevent it from spreading to the rest of the world. But the lenders have had to contend with divergent rules and modes of operation, leading some officials to urge the IMF to play a smaller role in future European rescue packages. In previous meetings, the United States has encouraged European countries that have a trade surplus, such as Germany, to focus on boosting domestic demand in order to help the recovery. The tone is likely to be similar this time, as Brainard urged Europe to have a 'demand plan' to boost growth, and also to move quickly toward a banking union. The United States said it is coming into the G-20 meetings with its strongest economy since the group started meeting, perhaps giving it a better bargaining position as it pushes for growth measures. The G-20 first started meeting in 2008. http://www.reuters.com/article/2013/07/15/us-usa-g20-imf-idUSBRE96E0WF20130715