US ready to help EU resolve its economic crisis: Obama

Washington: US President Barack Obama has said that his administration stands ready to help Europe resolve its on-going economic crisis.

“The United States stands ready to do our part to help them resolve this issue. This is of huge importance to our own economy,” Obama told reporters in a joint media availability with the European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

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“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,” Obama said as he hosted the US-EU Summit at the White House.

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Noting that, the European Union and the United States, have the strongest trade and economic relationship in the world, Rompuy said both need to take strong action to address the near-term growth concerns as well as fiscal and financial vulnerabilities in order to strengthen the world economy.

“It is no secret that European Union is going through a difficult period. It is confronted with a confidence crisis aggravated by the slowdown in global economic growth. The union has done a lot over the last 18 months and we have taken decisions that were unthinkable just a year ago in the fields of economic governance, on budgets and imbalances, financial support and final regulation,” he said.

“All member states of the union are all engaged in policies of fiscal consolidation and strengthening competitiveness via comprehensive reforms,” he added. “But we have to do more. We are therefore working hard on three fronts: dealing with the immediate crisis, the medium term, and while also establishing a sound perspective for the longer term,” he said.

On 9 December, he said, he will present to the heads of state and government a road map on how to strengthen the economic union of the euro area commensurate with our monetary union.

“We are aiming for binding rules to ensure strong fiscal and economic discipline in all countries to go hand in hand with fiscal and economic integration, not only discipline but also integration in the euro area as a whole. Improving fiscal sustainability is essential but is not enough. Promoting growth and employment is a challenge we share with the United States,” he said.

“The European Union is following a two-track approach on growth. We want to strengthen fiscal sustainability while at the same time stimulating economic growth and employment by launching reforms, raising competitiveness and deepening the union’s single market, the largest in the world,” Rompuy said.

Barrosso said Europe is going through tough times, yes, but they are determined to overcome the current difficulties.

PTI