Geithner: Debt limit deal not optional

{mosads}He acknowledged that any deal will need to win the favor of both parties, noting that “you can’t do anything with just one party now in Washington.”

Republicans said they abandoned the talks over opposition to tax hikes. While not explicitly calling for a package that included increases in revenue, Geithner maintained the administration call for a “balanced comprehensive deal.”

“Does it have shared sacrifice and compromise? That — that’s the test for us,” he said. “We’re going to try to make as large a down payment, in terms of deficit reduction, as we can.”

On the broader economy, Geithner said the recent slowdown in the recovery stemmed from the need to continue “digging out” from under large debt burdens that led to the downturn in the first place, as well as “headwinds” like spiking gas prices and disruptions from the disasters in Japan.

However, he maintained that most setbacks appear to be temporary, and that the nation’s economy is poised for strong growth in the second half of the year.

“That’s a perfectly achieveable outcome for us,” he said. “We’ve just got to make sure we do things in Washington to make that more likely. Not less likely.”

He also dismissed out of hand arguments that regulations brought on by administration initiatives like Wall Street reform were slowing the recovery.

“There’s almost no basis for that concern,” he said. “We’re putting in place the basic protection that countries need to protect themselves from excess in the financial system.”

Geithner spent Friday in New Hampshire, meeting with local business leaders and speaking at an event hosted by Dartmouth College. However, while 2012 presidential candidates are making their pilgrimages to the Granite State, Geithner made clear there was “no risk” he was one of those.

“Lots of people should be reassured by that,” he said.