White House confident in EU over Greece crisis

WASHINGTON: The White House said Tuesday it was confident that the European Union was capable of handling a financial crisis unleashed by Greece's huge deficit, which rocked markets across the globe.

President Barack Obama has been fully briefed on the situation by Treasury Secretary Timothy Geithner and senior advisors Christina Romer and Lawrence Summers, White House spokesman Robert Gibbs said.

"We have confidence, as they told the president that the EU is capable of dealing with this situation," Gibbs said.

"I think all are in agreement that the EU is capable of solving this."

The White House comments came as the EU pressured Greece into drastic new action to rein in its deficit and public debt and said it would send officials to Athens to monitor the government's performance.

Finance ministers from the 27 European Union nations meanwhile signed off on moves to force Athens to prepare "additional measures" by March 16.

These fresh cost-cutting and tax-raising plans will be ordered should Brussels deem progress to be insufficient by then.

The euro meanwhile rose sharply against the dollar, as investors regained confidence after the moves by the European ministers, hitting 1.3744 dollars in late trading in London from 1.3598 dollars late on Monday.