• Economists expect Euro to reach parity with US dollar • Timothy Geithner confident Europe will resolve its debt crisis Europe needs a “quantum leap” in the way the eurozone economies manage their budgets to allay the markets’ fears that the problems in Greece will lead to ‘contagion’ elsewhere, European Central Bank president Jean-Claude Trichet said over the weekend as he tried to calm fears that the mounting ‘sovereign debt’ crisis could split the monetary union apart. Trichet also stressed that the recent dramatic decision to allow the European Central Bank to buy up bonds issued by the eurozone’s most economically troubled members will not cause inflation, as all additional liquidity injected into the financial system will be withdrawn, and is “totally different” from the quantitative easing that took place in the US and UK after the collapse of Lehman Brothers