US Treasury concerned about slowing growth in Europe

The US Treasury is concerned about slowing growth in Europe and Japan.

An unnamed official warns that Europe cannot be "complacent" about its current performance.

However, the official also predicts that the US slowdown could be nearing an end.

In a briefing session with journalists in Washington, the official stressed that major economies are interconnected and it is not only the U.S. that needs to take actions to boost growth.

The official says the Bank of Japan's move to restore a zero interest rate policy is definitely a step in the right direction.

He predicts that the upcoming G7 summit of major world economic powers will focus on the Japenese economy's woes.

He adds:"Whether it be consumption-led, investment-led or focused on exports the most important thing is that the Japanese economy starts growing again."

The official, who insisted on anonymity, says the priority is for a resumption of growth in Japan.

Treasury Secretary Paul O'Neill is expected to reveal strength in parts of the US economy with tax cuts also stimulating growth.

The official says: "We'll be moving out of this (slowdown) before too long."