Geithner: U.S. has 'Very Strong Interest' in EU Summit Succes

The United States has a "very strong interest" in a successful outcome from the European Union summit starting later on Thursday, U.S. Treasury Secretary Timothy Geithner said during a visit to Italy.

"The U.S. and the world economy as a whole has a very strong interest in the success" of the summit, Geithner said following talks with Italian Prime Minister Mario Monti in Milan and after visits to France and Germany.

Geithner also backed the draconian austerity measures adopted by Monti's cabinet on Sunday now set for parliamentary approval and Monti said he would travel to Washington to meet U.S. President Barack Obama next month.

"I think we can be encouraged and the world can be encouraged at the progress of these last few weeks," Geithner said.

"The leaders of Europe are moving to strengthen the foundations of monetary union, moving towards a framework of fiscal and financial integration that is very important for the viability of monetary union," he added.

Monti said: "We discussed the steps towards a stronger fiscal union with a possible modification of the EU treaty... and the construction of a series of firewalls to support the Eurozone."

The two also discussed how the IMF "can have a role in the harmonious functioning of the whole mosaic in this delicate phase," he said.

Monti has previously denied press reports that the International Monetary Fund is offering a credit line to Italy to help it manage its debt.

The toxic mix of an Italian debt mountain of 1.9 trillion euros, very weak economic growth and high borrowing costs have fanned nervousness on the financial markets that Italy could find itself insolvent within months.

Monti's reform proposals have helped ease those tensions in recent days.

France and Germany are pushing for deeper integration in Europe to help save the euro from collapse but there are numerous obstacles including strong opposition from European Union members that are not part of the Eurozone.