Geithner urges action on European debt plan

Action on European proposals to restructure the financial system will boost market confidence, a top Obama administration official said Wednesday. 

"It's a good program and it has 'the right elements'" but markets are looking for the $1 trillion plan to be put into action, Treasury Secretary Timothy Geithner said Wednesday after meeting with his counterpart, U.K. Chancellor of the Exchequer George Osborne. 

American markets have fluctuated widely on rising fears of a European debt crisis, with the Dow Jones industrials dropping more than 1,000 points in the past month. 

Spurred by Greece's debt concerns, the International Monetary Fund and the European Commission provided funds for a program to help euro-zone governments if they have trouble raising funds from capital markets.  

Geithner applauded the U.K.'s plan to address its budget deficit by cutting spending — the proposal includes $8.9 billion in cuts — saying the new coalition government has laid out a "compelling fiscal plan." The plan strikes a balance "between tackling the deficit and encouraging growth," he said. 

Geithner also met with European Central Bank and supervisory officials this morning and is headed to Frankfurt for a working dinner with Jean-Claude Trichet, head of the European Central Bank. He completes his trip with a Thursday meeting with German Finance Minister Wolfgang Schaeuble in Berlin.