Obama Urges Euro Leaders to Solve Debt Crisis
President Barack Obama wants the European leaders to resolve their debt crisis this week but he knows that not much progress can be achieved before the end of the month. Obama will attend the two-day summit of the Group of 20 leaders that will be held in Mexico on Monday. He urged the European leaders to recapitalize weak banks and spur economic growth.
The G20 summit is a gathering of the leaders of 20 big industrial economies, which include euro zone’s Germany, France, and Italy. The financial crisis in Europe can affect the global economy. If left unsolved, a global recession can happen.
The euro zone is a top trading partner of the United States. At present, some of its members are already experiencing recession, which include Spain, Italy, Greece, and the Netherlands. Greece is held an election last Sunday and policymakers across the globe are now preparing for the country’s exit from the euro block.
The European Union will hold its leaders’ summit from June 28 to 29 to discuss potential reforms to the region’s fiscal policies. The summit will bring progress towards solving the debt crisis. It has been one of the thorns in President Obama’s re-election bid.
Republican candidate Mitt Romney accuses the president of implementing European-style welfare policies that can place America into a financial crisis. He also made it clear that he opposes using US tax dollars to bail out any of the European countries. He said that the US must not send checks to Europe. President Obama replied that the Europeans must try to solve their own problems.
Romney added that US banks are stronger than they were a few years ago. He said that he hopes that no matter what happens in Europe, the nation’s banking sector can weather the storm and come out unscathed.