French President Francois Hollande and U.S. President Barack Obama spoke by telephone Wednesday agreeing that stability in the euro zone is essential for the global recovery, according to a statement issued by the French President's office.
The discussion between the two leaders comes amid rising expectations that the European Central Bank and the U.S. Federal Reserve are preparing to take action in a bid to support economic activity.
President Hollande and President Obama "expressed their shared interest in European growth and euro-zone stability, which are necessary for the global recovery," said the statement.
Germany's finance minister is rejecting U.S. President Barack Obama's calls on Europe to move faster in fighting its debt crisis, telling him to get the American deficit under control instead.
Wolfgang Schaeuble told public broadcaster ZDF in an interview late Sunday that ``people are always very quick at giving others advice.''
He says: ``Mr. Obama should first of all take care of reducing the American deficit, which is higher than in the eurozone.''
China pledged $43 billion, while India and Russia promised $10 billion each, to the International Monetary Fund Monday as aid to debt-ridden countries in the euro zone...
The contributions from the emerging economies have come at a time when the U.S. has refused to extend financial assistance.
Despite the euro zone crisis crippling the U.S. economy, Barack Obama, facing presidential election in months, is under intense political pressure at home against committing to new cash donations.
In an impatient and forceful message, Mr Obama said there was “a path out of the crisis” if only leaders would take the “decisive actions” needed.
In Madrid, Berlin and Brussels officials denied that a rescue plan for Spanish banks was ready to launch this weekend, but Mr Obama blew their cover. “The focus must be on strengthening the banks, like we did in 2008,” he said. “EU leaders are in discussions about that and they are going in the right direction.”
...At the White House Mr Obama said: “The sooner [leaders] act, the more decisive and concrete their action, the sooner people and markets will regain some confidence.”
But he acknowledged that the European situation was "more complicated" than America's. Earlier, the G8 leaders said "the right measures are not the same for each of us".
In a statement, the group said it agreed "on the importance of a strong and cohesive eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the eurozone while respecting its commitments".
Speaking to reporters at the end of the summit, President Obama said: "As all of the leaders here today agree, growth and jobs must be our top priority."
Emphasising that the United States had taken this approach to its own financial crisis, he said he was "confident" that European countries were moving in the right direction.
But William Kennard, the US envoy in Brussels, said there was no discussion of the United States making any financial obligations to help Europe or increasing its payments to the IMF - moves bound to face stiff political opposition given fiscal pressures gripping the US Congress.
Rather, the Obama administration has focused on offering advice on rescue programs and how to make tough political decisions drawn from its experience during the U.S. financial crisis of 2008.
As the European debt crisis continues to escalate, President Obama urged European Union leaders today to act quickly to resolve the eurozone crisis, saying that “the United States stands ready to do our part to help them resolve this issue.
“This is of huge importance to our own economy. If Europe is contracting or if Europe is having difficulties, then it’s much more difficult for us to create good jobs here at home because we send so many of our products and services to Europe; it is such an important trading partner for us,” the president said following an annual meeting between U.S. and EU officials. “We’ve got a stake in their success, and we will continue to work in a constructive way to try to resolve this issue in the near future.”
The United States doesn't plan to offer financial help at this week's G-20 summit to European leaders wrestling with a government debt crisis that threatens the global economy.
Instead, U.S. officials said, eurozone countries have the capacity to help themselves — and if they need assistance, they can turn to developing countries led by China as well as the International Monetary Fund.
In exchange for by far the largest bailout ever assembled for a country, Prime Minister George Papandreou announced further spending cuts and tax increases totaling 30 billion euros over three years on top of tough measures already taken...
U.S. President Barack Obama told Papandreou on Sunday he welcomes Greece's "ambitious" reform program, the White House said. He also praised the "significant support" from the IMF and Eurozone members.