News / Europe

EU Leaders Pledge New Economic Integration

U.S. President Barack Obama meets with leaders of the European Union to discuss economic issues at the White House in Washington November 28, 2011
U.S. President Barack Obama meets with leaders of the European Union to discuss economic issues at the White House in Washington November 28, 2011
Peter Cobus

Key European leaders pledged at a meeting with U.S. President Barack Obama Monday that they will push for closer economic integration of the 17-nation eurozone to help resolve the continent's burgeoning debt crisis.

European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso called for uniform, binding controls over government spending in the countries that use the euro currency. Mr. Van Rompuy said a "roadmap" spelling out a new eurozone economic plan would be presented to a European Union summit in early December.

Barroso, speaking after a White House summit in Washington with President Obama, said European leaders "are determined to overcome the current difficulties." Debt-ridden Greece, Ireland and and Portugal have already been forced to secure international bailouts, while Italy, Spain and other countries are facing sharply increased borrowing costs to finance their governments.

Mr. Obama said the U.S. is prepared "to do our part" to help Europe solve its debt crisis, which he described as being "of huge importance to our economy." But he did not spell out any specific actions the U.S. might take.

A new report says the eurozone's economy is falling into a recession.

The Organization for Economic Cooperation and Development said it expects the eurozone economy will shrink by an annualized rate of one percent in the last three months of the year, and by another four-tenths of one percent in the first quarter of 2012. The OECD, a policy forum for 34 advanced economies, said the European Central Bank needs to intervene decisively to stabilize the continent's debt crisis.

White House spokesman Jay Carney said the European debt crisis has "created a headwind for much of the year" on the sluggish U.S. economy.  He said the U.S. government believes it is "critical" for European leaders to "move forcefully" to resolve the debt issue and that the eurozone nations have the financial capacity to deal with it.

As debt worries in Italy, Spain and elsewhere roil international financial markets, the continent's economic leaders - Germany and France - are starting to negotiate a new fiscal agreement that would enforce budget discipline across the eurozone. That is something individual countries have long resisted, as they fear the loss of sovereign control.

The effects of the debt crisis have been widespread. Belgium was forced to pay sharply higher interest rates on Monday, while the Italian Banking Association promoted a patriotic drive to get Italians to buy government bonds to try to keep interest rates from spiraling out of control.

Credit rating agency Moody's warned in a statement Monday that while it believes there will not be widespread defaults in the eurozone, the probability of multiple debt defaults is "no longer negligible."

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

You May Like

Turbulent Transition Imperils Tunisia’s Arab Spring Gains

Critics say new anti-terrorism laws worsen Tunisia's situation while others put faith in country’s vibrant civil organizations, women’s movement More

Burundi’s Political Crisis May Become Humanitarian One

United Nations aid agencies issue warning as deadly violence sends tens of thousands fleeing More

Yemenis Adjust to Life Under Houthi Rule

Locals want warring parties to strike deal to stop bloodletting before deciding how country is governed 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.
Texas Town Residents Told to 'Just Leave' Ahead of Flood Threati
X
Greg Flakus
May 29, 2015 11:24 PM
Water from heavy rain in eastern and central Texas is now swelling rivers that flow into the Gulf of Mexico, threatening towns along their banks. VOA’s Greg Flakus visited the town of Wharton, southwest of Houston, where the Colorado River is close to cresting.
Video

Video Texas Town Residents Told to 'Just Leave' Ahead of Flood Threat

Water from heavy rain in eastern and central Texas is now swelling rivers that flow into the Gulf of Mexico, threatening towns along their banks. VOA’s Greg Flakus visited the town of Wharton, southwest of Houston, where the Colorado River is close to cresting.
Video

Video New York's One World Trade Center Observatory Opens to Public

From New Jersey to Long Island, from Northern suburbs to the Atlantic Ocean, with all of New York City in-between.  That view became available to the public Friday as the One World Trade Center Observatory opened in New York -- atop the replacement for the buildings destroyed in the September 11, 2001, attacks.  VOA’s Bernard Shusman reports.
Video

Video Seoul Sponsors Korean Unification Fair

With inter-Korean relations deteriorating over the North’s nuclear program, past military provocations and human rights abuses, many Koreans still hold out hope for eventual peaceful re-unification. VOA’s Brian Padden visited a “unification fair” held this week in Seoul, where border communities promoted the benefits of increased cooperation.
Video

Video Purple Door Coffeeshop: Changing Lives One Cup at a Time

For a quarter of his life, Kevin Persons lived on the street. Today, he is working behind the counter of an espresso bar, serving coffee and working to transition off the streets and into a home. Paul Vargas reports for VOA.
Video

Video Modular Robot Getting Closer to Reality

A robot being developed at Carnegie Mellon University has evolved into a multi-legged modular mechanical snake, able to move over rugged surfaces and explore the surroundings. Scientists say such machines could someday help in search and rescue operations. VOA’s George Putic reports.
Video

Video Shanghai Hosts Big Consumer Electronics Show

Electronic gadgets are a huge success in China, judging by the first Asian Consumer Electronics Show, held this week in Shanghai. Over the course of two days, more than 20,000 visitors watched, tested and played with useful and some less-useful electronic devices exhibited by about 200 manufacturers. VOA’s George Putic has more.
Video

Video Forced to Return Home, Afghan Refugees Face Increased Hardship

Undocumented refugees returning to Afghanistan from Pakistan have no jobs, no support system, and no home return to, and international aid agencies say they and the government are overwhelmed and under-resourced. Ayesha Tanzeem has more from Kabul.
Video

Video Britain Makes Controversial Move to Crack Down on Extremism

Britain is moving to tighten controls on extremist rhetoric, even when it does not incite violence or hatred -- a move that some are concerned might unduly restrict basic freedoms. It is an issue many countries are grappling with as extremist groups gain power in the Middle East, fueled in part by donations and fighters from the West. VOA’s Al Pessin reports from London.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video Al-Shabab Recruitment Drive Still on In Kenya

The al-Shabab militants that have long battled for control of Somalia also have recruited thousands of young people in Kenya, leaving many families disconsolate. Mohammed Yusuf recently visited the Kenyan town of Isiolo, and met with relatives of those recruited, as well as a many who have helped with the recruiting.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.

VOA Blogs