News / Economy

Obama Says Progress Made in Stabilizing World Economy

US President Barack Obama speaks during a media conference at a G20 summit in Cannes, France. Leaders from within troubled Europe and far beyond are working Friday on ways the International Monetary Fund could do more to calm Europe's debt crisis, Novembe
US President Barack Obama speaks during a media conference at a G20 summit in Cannes, France. Leaders from within troubled Europe and far beyond are working Friday on ways the International Monetary Fund could do more to calm Europe's debt crisis, Novembe

U.S. President Barack Obama says the world's leaders have "made important progress" in stablizing the global economy and that he is confident European leaders will be able to resolve the continent's debt crisis.

Obama told reporters Friday at the end of the Group of 20 summit in Cannes, France, that "more hard work" remains to solve the European debt problems.  But he said European leaders had "laid a foundation" toward resolution of the crisis with last week's debt-relief plan that cuts Greek debt, recapitalizes banks and increases the continent's bailout firewall to deal with future emergencies.

Now, he said, the European plan "just has to be carried out."

The U.S. leader acknowledged, however, that the U.S. economy is "underperforming." He said that the U.S. recognizes that as the world's largest economy, "the most important thing we can do is to get our own economy growing faster."

He praised China for agreeing at the summit to take additional steps to boost its own domestic economy, in an effort to trim its large foreign trade surpluses, which has resulted in a huge trade deficit with the U.S.

Related report by Kent Klein:

Earlier, the G20 leaders said the resources of the International Monetary Fund need to be increased to help curb the European debt crisis, but failed to agree how to do that. The shape of any additional aid for the IMF remained uncertain at a time when some of the world's largest economies, such as the U.S. and China, are facing their own economic difficulties.

Efforts to contain the European governmental debt crisis remained at the forefront on the second and final day of the G20 discussions, even after Greek Prime Minister George Papandreou on Thursday dropped his plan to hold a referendum on the week-old European debt-relief agreement. Under pressure from the U.S. and emerging economies, Italy agreed that the IMF would monitor implementation of its austerity measures aimed at keeping it from needing a bailout.

Thursday's talks were largely overshadowed by Greece's hesitancy to abide by the terms of the financial rescue package. European banks plan to forgive $140 billion in Greek debt in exchange for the Athens government's agreement to adopt years of austerity measures that are hugely unpopular in Greece.

Late Thursday, French President Nicolas Sarkozy again urged Greece to accept the deal.

"I have admiration for Greece and its people. I have old family ties there, and in no way would I want to give the impression that we are interfering in their domestic affairs. But on the other hand, this is about the defense of the euro and the defense of Europe - and that's our duty. For us, the red line is very simple. Europe and the euro are our homeland - and that has to be defended," he said.

Earlier this week, Papandreou caused global financial panic by announcing a nation-wide vote on the bailout plan. He backed off his call for the vote after Greek opposition parties finally agreed to back the rescue package.

Sarkozy and German Chancellor Angela Merkel have warned that Greece will not receive "one more cent" of the next $11 billion disbursement of its rescue loan scheduled for December 4 unless it implements the austerity measures.

Without the funds, Greece risks a catastrophic debt default within weeks, putting at risk its membership in the 17-member bloc of nations that use the common European currency.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Israel Targets Gaza Supply Tunnelsi
X
July 24, 2014 4:42 AM
The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video MH17's 'Black Boxes' Could Reveal Crash Details

The government of Malaysia now has custody of the cockpit voice and flight data recorders from Malaysia Airlines Flight 17, which was hit by a missile over Ukraine before crashing last week. As VOA's Carolyn Presutti reports, the so-called black boxes may hold information about the final minutes of the flight.
Video

Video Living in the Shadows Panel Discussion

Following a screening of the new VOA documentary, "AIDS - Living in the Shadows," at the World AIDS conference in Melbourne, a panel discussed the film and how to combat the stigma associated with HIV/AIDS.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.