Lew urges Europe to compromise with Greece on debt overhaul


US Treasury Secretary Jacob J. Lew called on Greece and its European creditors to reach an agreement that keeps the euro area intact, saying a long-term solution must include restructuring of the cash-strapped country’s debt.

“I continue to believe that it is in the best interest of all parties to find a resolution,” Lew said Wednesday at a Brookings Institution event in Washington. “Greece needs a path towards a sustainable debt path.”

The European Union set a Sunday deadline to reach a deal with Greece on a rescue in exchange for austerity measures and economic reforms, while the country formally requested a new three-year bailout and promised to pay back its debts.

The sides need to build trust, he said. “It’s going to be a lot to do in a short period of time,” Lew said.

Lew said he doesn’t think the Greek crisis or China’s stock market slump pose an immediate risk to the U.S. economy.