US encouraged by eurozone's commitment to long-term reform

The White House welcomed the decisions taken by European leaders to boost flagging economies, saying these are encouraging signs, even as it acknowledged that the challenges will not be resolved overnight.

“We welcome the indications that euro-area leaders made progress last night as they grapple with these challenges. We also, of course, note that these difficulties will not be resolved overnight, and details remain to be worked out,” White House Press Secretary Jay Carney said.

“But it is encouraging that leaders are looking at ways to reduce immediate financial market stresses and to undertake longer-term reform and integration plans to promote growth and responsible fiscal policies,” he said when asked as to the short-term solutions agreed upon by European leaders to address their current economic crisis.

“Part of your question was the recognition that what happens in the eurozone affects the American economy, and it’s in our national interest for Europe to deal with this crisis and take the action necessary to hold the eurozone together and rebuild confidence, stability and growth.

“And again, we were encouraged by some of the progress made last night,” he said. The US President, he said, has been consulting with his European counterparts quite a bit, including at the G8 and the G20, and by phone, with a number of them including those of France, Greece and Germany.

Carney said the US does not expect these challenges to be resolved overnight. “We certainly are encouraged by the progress that was made, but a lot of details still need to be worked out. We will continue to consult with our European counterparts and monitor the progress that they’re making,” he noted.

Refraining from the detailed assessment of the progress that they did make last night by the European leaders, Carney said: “The details still need to be worked out. “And this is, as we’ve said all along, an ongoing process of steps that need to be taken. And prior to last night, the Europeans had taken some significant steps towards dealing with this, and I’m sure there will be more steps taken in the future.”

Coming out of both the G8 and the G20 there was a commitment by eurozone members to focus on the need for growth and job creation as well as fiscal consolidation, he said. “That is the European commitment, and it certainly is in line with the views of the President about what he believes is the right course to take,” said the White House spokesman.

PTI