GOP Bill Prevents Geithner From Voting For IMF Loans To EU Members

House Republicans are drafting a bill that would force Treasury Secretary Timothy Geithner to vote against IMF loans to European countries.

The legislation is a response to the European Union and International Monetary Fund’s bailout of Greece, and possible future aid to other debt-ridden European countries.

The IMF and EU have agreed to create a nearly $1 trillion fund that would offer loan guarantees to any country that needs the help. The idea is to prevent turbulence in financial markets and currencies given the wariness with which traders are viewing Europe.

The U.S. has not offered any direct assistance to Europe, but House Republicans say the U.S. should stand against IMF assistance as well. The U.S. has a nearly 17 percent voting share in the IMF based on its annual contributions.

Republicans question whether the bailout will work, and stress that U.S. tax dollars should not be wasted.

President Barack Obama’s administration has supported the EU-IMF effort, and over the weekend Obama made it clear that a larger support program was necessary to ensure the Greek crisis didn’t cause more severe global economic problems.

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