LONDON (AP) — US Treasury Secretary Timothy Geithner said yesterday that the European Union has a good plan for tackling its debt crisis but that it needs to act soon.

The European Union has drafted a $1 trillion rescue package for eurozone countries aiming to avoid a rapid fall in the euro and protect countries from bankruptcy.

Geithner endorsed the European programme at a brief news conference with Britain's Treasury chief, George Osborne.

"I think it has got the right elements," Geithner said but added: "The markets want to see action."

He added that he believe European leaders "will do what's necessary to make it work".

Geithner met in London with Osborne and Business Secretary Vince Cable, newly installed in office in the coalition government which took over after the national election earlier in May. Geithner was also meeting Bank of England governor Mervyn King.

"I just want to underscore the American commitment to making sure that we come to agreement on a carefully designed, consistent approach to financial reform that will put in place stronger global standards across the system , provide the right balance between stability, preserving the capacity for innovation and making sure we reduce the risk of future crises," Geithner said.

From London, Geithner was headed to Germany for meetings with Jean-Claude Trichet, the head of the European Central Bank, and German Finance Minister Wolfgang Schaeuble.

US Treasury officials played down market speculation that Geithner's meetings would produce coordinated action, such as an intervention to bolster the euro.