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Merkel's plan for euro 'encourages' Obama

The Local · 19 Jun 2012, 07:49

Published: 19 Jun 2012 07:49 GMT+02:00

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"The president was encouraged by what he heard regarding ongoing discussions in Europe about the path they are pursuing to address the crisis," White House spokesman Jay Carney told reporters at the G20 summit in Mexico.

"The two leaders agreed to work closely together, including at this G20, to build support for what needs to be done in Europe and the world to stabilise the situation and support growth and jobs," Carney said.

Carney said that Merkel and Obama also spoke briefly about the bloodshed in Syria during the 45-minute one-on-one meeting in the beach resort of Los Cabos.

Merkel, leading Europe's largest economy, has emphasized financial responsibility amid a debt crisis in Greece and woes elsewhere in the continent.

Obama, along with France's new President Francois Hollande, have put a focus on growth.

Lael Brainard, the Treasury undersecretary for international affairs, told reporters: "We're seeing a noticeable shift in the European discussion regarding the critical importance of supporting demand and job growth.

"Importantly there's a recognition of the need to assess fiscal consolidation plans on a structural basis, in short recognizing the deterioration in economic conditions"

Brainard said the attitude change includes Germany, which has been under heavy pressure to ease its insistence that the weaker eurozone members slash spending to balance their finances before trying to pump up growth.

"I think if you look at the shift in the focus, we'll see a very strong focus on supporting demand, strengthening demand, recognizing that economic conditions have deteriorated, is very important to the Europeans in particular," she said.

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"And yes, we have heard it from our German colleagues. They're factoring demand into their near-term thinking, recognising, again, that it's important for the euro area to move forward on the key areas," she said.

She mentioned specifically the need to press for greater integration of eurozone banking, stronger firewalls to prevent contagion from sinking the weak economies, and easing austerity programs to help economies get back in gear.


The Local (news@thelocal.de)

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Your comments about this article

08:07 June 19, 2012 by IchBinKönig
pats on the back for 2 'leaders' on the way out. ciao.
11:48 June 19, 2012 by The-ex-pat
US President Barack Obama feeling "encouraged" by Europe's plans to move out of its economic crisis after talks on Monday, the White House said.-------

Sorry Mr President, but remind me who's country kicked this off selling mortgages to people who would never be able to repay them and who's government has more debt on it's books than ALL of the European countries put together. If it was not for the Petro Dollar bank recycling where by banks are using deposited oli money surplus to prop them selves up (if you don't know about it, Google, eg http://www9.georgetown.edu/faculty/imo3/petrod/allocate.htm) then the US would be going cap in hand to the European Central Bank too. What we need is practical solutions and not the do as I say, not as I do attitude from the US President and treasury. The US debt is $15 Trillion and increasing at $3 billion A DAY!!! So keep your patronising and condescending remarks to yourself and get your own house in order.............
14:09 June 19, 2012 by smart2012
Germany is the only place where they say that Obama was encouraged by Merkel. all the other eu press says that meeting was bad and merkel is more and more isolated
14:28 June 19, 2012 by Bushdiver
I hope her new ideas are better than the previous ones. As far as Obama goes, he knows nothing about economics so what he may or may not think doesn't really matter. I personally feel that Merkel will keep throwing money away until Germany is financially in trouble as well. As it is if the Greeks fail the German banks will be eating a lot of debt.
15:18 June 19, 2012 by catjones
I agree, the Americans are to blame for all of europe's problems...finance, crime, obesity; you name it. And Obama is at the center of all these woes. If only Bush were still in office or McCain/Palin, then we'd be out of this mess by now and the world would be problem free.
17:01 June 19, 2012 by SchwabHallRocks
Only thing that bothers me is how the press and policiticians keep using the word "growth" when it is simply "deficit spending."

Even the article above talks about the "growth" agenda. Maybe one day they will talk about "time to pay back the debt" agenda or use that as a lever to federalize all debt in USA and Europe.

Merkel's job, as is every politicians', is to get re-elected. If the German voters want to bail out Europe with a central bank and cheap loans, then she will. If they don't, she won't.
17:54 June 19, 2012 by marimay
These people do not live in reality. Must be nice..
21:17 June 19, 2012 by PNWDev

Anything that will help Obama¦#39;s PR encourages him and it makes no difference to him where it comes from. At this point he is desperate, and desperate people are never picky.


Yes, Obama is completely clueless and his biggest mistake was to hire other clueless academics who never had to manage finances and growth strategies in a real-time, business-environment. He understands nothing about how his repeated, short-term fixes have destroyed business confidence so badly they can do nothing other than hoard cash and wait for concrete, longer-term policies.

In this environment there is no possible way to calculate the TVM and ROI for future strategic growth planning. How can any business come up with measurable cost variables? What on earth would they be based on given the fact businesses 1) have no idea of the HR costs and new taxes associate with Obamacare, 2) have no idea what the corporate tax rates will be beyond next year, and 3) have no long-term plan for personal tax policy.

And yes again, unfortunately, peer-pressure from Obama and the other bailout schmucks will do Angie in and they are not going to realize it until too much has been burned. There is not enough money in the EU to solve this. Their plan gives them one chance to fix this and it will not work. Greece¦#39;s economy relies too much on the travel and leisure sector and that is always the first sector to suffer in slow economies and that last to recover in growing economies. Success will require GDP rates in the EU to perform over-and-above anything realistic over an unsustainable period of time all the while having to trust the governments to stay in compliance with spending agreements. A foolish thought for sure.


Yes, take a billion from the credit card and transfer it to the checking account. Start spending it and use the sales numbers to demonstrate growth, but do not show anyone the debit side of the trade or contrast the depreciation value between goods purchased and interest paid. Government accounting can be spun in anyway needed, we do that in private industry and the guy signing off on it goes to jail.
22:54 June 19, 2012 by Jerr-Berlin

The US with at least 20 trillion dollars of national debt, "real" undemployment at 22%.. a current account trade deficit of 1 trillion...wars in nine different countries...proxie wars in over 120...yes, indeed...listen to the little dictator, that has exacerbated, promulgated and embraced the worst of George W...has totally eviscerated the Bill of Rights...yes...let this man and the "society" he represents...give "advice" to those post WW2 satraps and US colonies...
02:35 June 20, 2012 by Eric1
This is the most incompetent President in modern times. President Obama is distroying the USA. God, please give us George Bush back. I don't know how much longer the media can cover for him.
05:44 June 20, 2012 by Buddy Dickerson
As an American

The Greeks are the Titanic the euro will crash … these guys are playing the fiddle and trying to bail out Spain, Ireland, Greece Italy and Portugal is like trying to bail water out of the Titanic with a child's beach bucket.

The German people should take a look back in history and remember another time ... they should have stopped their government.

Europe has bigger problems than the leaves on the tree with the Euro. In The Plot to Overthrow by a fellow named Mohammad Goldstein he lays out the big picture on the horizon. Obama, senators and every congressman has a hard copy and you can get it for nothing on the net. This American movement will slap the silly out of your politics.
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