Go for growth
Obama’s tip to solve Europe crisis
PRESIDENT Barack Obama pressed Europe yesterday to shift toward a more pro-growth policy and away from austerity to tackle a crisis that threatens to push Greece out of the eurozone and send economic shockwaves worldwide.
Setting the tone for a weekend G8 summit, Obama made clear he was aligning himself with the new French president’s drive for more economic stimulus in the recessionplagued eurozone instead of emphasising belt-tightening programmes spearheaded by Germany.
Obama’s stance reflects his worries that the eurozone contagion, which threatens the future of Europe’s 17-nation single currency, could hurt the fragile United States economic recovery and his own reelection chances in November.
After White House talks with French President Francois Hollande, Obama said the two agreed tackling the eurozone crisis was ‘‘an issue of extraordinary importance, not only to the people of Europe, but also to the world economy’’.
‘‘We’re looking forward to a fruitful discussion later this evening and tomorrow with the other G8 leaders about how we can manage a responsible approach to fiscal consolidation that is coupled with a strong growth agenda,’’ Obama said before the summit’s opening dinner at Camp David.
German Chancellor Angela Merkel, who insists on the need for fiscal discipline to bring down debt levels across the eurozone, could become increasingly alone when leaders gather at the presidential retreat in Maryland.