G-8 Leaders Juggle Eurozone Crises at Camp David
- Posted on May 19, 2012 at 6:12pm by
Erica Ritz
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(Photo: AP)
(The Blaze/AP) — President Barack Obama and the leaders of other wealthy nations underscored an increasing consensus that their countries need to adopt growth measures and relentless budget cutbacks in order to resolve their debt troubles during the G-8 Summit, and underscored their desire to keep Greece on the Euro, even as the country battles financial crisis.
It‘s a juggle that’s much harder in real life than it is on paper.
Their eight-paragraph statement from the presidential retreat at Camp David, Md., on Saturday bridged both sides of the austerity versus growth debate and let each decide exactly what the new growth emphasis is going to mean, though it said little about where the money for more spending might come from.
Their agreement – reached quickly after a morning’s discussion at Camp David – bridged disagreement by not rejecting one approach in favor of the other, but rather by combining them. Balance budgets, yes, but find ways to spend, or rather “invest,” on things like education and public works, too.
French President Francois Hollande, left, listens to Barack Obama at the G8 Summit
The statement clearly reflected Obama’s wish for Europeans to go beyond the austerity approach championed by Germany. Obama’s stance appears to show concern that a deep European recession or financial implosion from Greece leaving the euro could hurt the U.S. economy and complicate his already difficult re-election bid.
According to the Guardian: “After three years of facing European leaders committed to deficit reduction, Obama has a new ally in Hollande. Speaking at Camp David, Hollande said European leaders were trying to balance the competing aims of reining in their budgets while stimulating their economies: ‘As President Obama noted, we need to pursue these two goals simultaneously: budgetary solvency and maximum growth.’”
In particular, the G-8 statement blesses some things that eurozone leaders are likely already doing, such as letting some indebted countries like Spain and Italy move a bit more slowly to close their large budget deficits. Countries need “sustainable” efforts to fix their finances, meaning they can “take into account countries’ evolving economic conditions.”
That could mean slower cuts. Spain, a recent focus of the crisis along with Greece, has sunk into recession and seen unemployment jump to 24 percent, 51 percent for people under 25. Spain is supposed to cut its deficit to the 3 percent EU limit next year, even though the European Commission itself predicts the deficit will come in at twice that. Economists predict that the EU may give them and others more time.
Yet Europe’s chief apostle of austerity, German Chancellor Angela Merkel, gave up very little. She said that she was open to investment in things that would boost growth over the long term, but made it clear that didn’t mean “stimulus,” a word that, like “spending” does not appear in the document.
President Barack Obama and German Chancellor Angela Merkel arrive at the G8 Summit (Photo: AP)
“This is not about stimulus programs in the usual sense, the way we applied them after the crisis,” she said. “What’s needed much more than that are investments in research and infrastructure, for instance in Europe in digital networks.”
She conceded she was “open” to more use of Europe’s EIB development bank and unspent EU infrastructure funds to help tiny, bankrupt Greece, now in the fifth year of a profound recession, but insisted Greece’s promises to cut back in return for bailout loans must be strictly observed. The country has no elected government right now and faces new elections June 17; an indecisive election May 6 showed a majority against the austerity measures demanded under the bailouts. Greek rejection of those terms could lead already exasperated eurozone leaders to cut off more bailout payments. That would leave the country unable to pay its bills, a step that could mean an even more savage recession and reintroduction of a devalued drachma in an effort to gain international competitiveness.
Money for investment could come from “a range of mechanisms,” it said, without specifics.
The ugly truth is that there isn’t a lot of money available to spend in many countries. Failure to keep reducing deficits could mean Spain and Italy would be viewed as bad risks and could no longer borrow affordably, leading to defaults that would dwarf Greece’s troubles.
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Comments (75)
trueamerican40
Posted on May 19, 2012 at 11:07pmThe Goof Troof-8. Commies and socialists together plotting on their ideas on utopia. Good luck on that—armageddon will soon follow.
Report Post »lovenfl3
Posted on May 19, 2012 at 11:41pmHere’s a crazy thought…..why don‘t the Eurpoeans take care of their own problems and we’ll take care of ours! Who thinks that any other country would help us out with our problems?
Report Post »http://www.youtube.com/watch?v=0t5bgM61ULc
lukerw
Posted on May 20, 2012 at 12:36amThey are caught between… a Rock… and… a Crazy Place!
Report Post »mils
Posted on May 20, 2012 at 12:36amas said, ANYTIME..bush went to camp david…it was a vacation, no matter the visiting dignitaries that were there…SO WHY IS THIS NOT ANOTHER OBAMA VACATION? There were times bush was at “the ranch” and foreign reps were there..the press still said it was a “vacation
Report Post »nothing worthwhile will be accomplished..
okay, destruction of america maybe, but nothing else…..
.
dublinthewagons
Posted on May 20, 2012 at 7:50amThe house is on fire, and these idiots are trying to decide what color roses to plant in the flowerbed.
Report Post »How much money was spent on the camp David vacation? These morns couldn’t solve a preschool math problem.
NHwinter
Posted on May 20, 2012 at 10:40amAnd who in that group is trustworthy?????????? I’m sure they think the only solution is a NWO.
Report Post »poorrichard09
Posted on May 21, 2012 at 7:54amHa! Getting economic advice from 0bozo is like getting marriage advice from Bill Clinton!
Report Post »mrsmileyface
Posted on May 19, 2012 at 10:37pmIts amazing! basically the President of the United States is going to just talk the trouble away. Hes going to wave his staff over the economy of the world and it will be healed. PRAISE BE HE OBAMA! Let it be written….Let it be done.
Report Post »revel222
Posted on May 19, 2012 at 10:48pmIf they want to keep Greece on the Euro so badly then I suggest Greece go its own way. I would do the opposite of what “they” want because we all know it’s about “control”. This is like a communist convention of mega manipulators. Why is no one stopping this guy? You know what guy
Report Post »lukerw
Posted on May 20, 2012 at 12:38amThis is his chance… to Really SCREW UP the WORLD!
Report Post »pwatkins
Posted on May 19, 2012 at 8:48pmThe real leader at this summit isn’t present, George Soros….Obama is only the messenger. Instead of a G8 meeting, I bet it is a GS meeting.
Report Post »lukerw
Posted on May 20, 2012 at 1:29amThe “FearLess Leader” having great success in America… will now lend his Talent to others!
Report Post »discus02
Posted on May 19, 2012 at 8:45pmObama and trimming the budget. Two words that shouldn’t be in the same sentence, maybe not the same book!
Just Say No to O
Report Post »RebelPatriot
Posted on May 20, 2012 at 12:53amTrimming the budget to King Hussein means trimming the military and space exploration. This way when the UN army shows up we don’t have an army to defend us against the invasion.
Report Post »lukerw
Posted on May 20, 2012 at 8:15amIdeology… trumps… Reality!
Report Post »The-Monk
Posted on May 19, 2012 at 8:24pmAnd once Hollande is drunk with power I’m going to start referring to him as “Hollande Sauced”.
Report Post »lukerw
Posted on May 20, 2012 at 10:50am‘Ol-land’ reminds me of Peter Sellers!
Report Post »Marv Fox
Posted on May 19, 2012 at 7:47pmG8 Summit. Or The Circle of Numb. A German news commentator on Deutsche Welle said last night that they were expecting a lot of nice words but nothing important to change. Angela Merkel from atop the apparent safest but no less threatened economy was austerity’s last lost hope. the recession bound socialists want more time, more spending, and less austerity. No one has spoken of their real problems. Out of control spending, out of control redistribution of borrowed money, out of control politicians, out of control unions, out of control workforces, out of control pensions; and, in other words, out of control socialism. Out of control is the standard for socialism. Anyone who has any control of himself or his finances wants no part of socialism. I think Eurozone socialism has doomed the Eurozone. It isn’t being held up by anything. It’s just not falling as fast as it could.
Report Post »Those nations with their homeland factories producing jobs do not fall.
The definition of our Republic is its Constitution; all other definitions are false or incomplete.
Redefining our Republic as “our democracy’ is false.
Marvin E. Fox
The Eradicator
Posted on May 19, 2012 at 7:44pmLOL…I mean, LOL!!
Report Post »possom
Posted on May 19, 2012 at 7:22pm3 1/2 yr‘s of failure and more coming we don’t need a summit to know that!
Report Post »Snowleopard {gallery of cat folks}
Posted on May 19, 2012 at 7:43pmIndeed.
Report Post »REPUB1
Posted on May 19, 2012 at 7:14pmall the Ducks in One Row, rat a rata rata rata tat tat end of our WOES.
Report Post »vtxphantom
Posted on May 19, 2012 at 7:07pmI am glad obama is there to save the world. The press releases should be good. Now obama has saved the world from itself. Only with his guidance has the tragedy been averted. I almost wish he would take a vacation until November. I can live without him.
Report Post »gpk
Posted on May 19, 2012 at 7:06pmMacht Nichts……be prepared.
Report Post »NOBALONEY
Posted on May 19, 2012 at 7:03pmAll socialists raise your hands.
Report Post »Baddoggy
Posted on May 19, 2012 at 7:01pmThe socialist dominoes are all about to topple. And we are the end domino. They are all going to fall on us. Buckle up Chuck….Its gonna be a rough ride.I have silver, gold, lead, food and water….Waiting for the fall. Yea, I’m crazy…hahaha
Report Post »chazmo
Posted on May 19, 2012 at 7:32pmI’m buckled already.. sheez.. and i’m crazy too..
Report Post »wntsmallgov
Posted on May 19, 2012 at 11:44pmThen there is a good portion of this nation that is crazy as well. Too bad the rest are slowly waking up from a bad dream to a reality of a nightmare.
Report Post »Gizzy
Posted on May 20, 2012 at 12:42pmDon’t waste your money on gold now, you can barter for it a whole lot cheaper with food , water and lead which is a whole lot cheaper now and more valuable when the TSHTF.
Report Post »Daveed
Posted on May 19, 2012 at 6:56pmThere is only 1 woman? The sexist pigs.
Report Post »Gizzy
Posted on May 20, 2012 at 12:47pmIt kind of puts a break in that group of circle jerks!
Report Post »Daveed
Posted on May 19, 2012 at 6:55pmThe Blind leading the Blind. The deaf temporary President of the REPUBLIC OF USA speaking to the world? Don’t listen to him people, he does not speak for 82 percent of the American people. We do not support, approve or acknowledge any treaty this President makes with any country on the planet!
Report Post »It is not legal or binding, as we were against, then we were more against it and we the people are still against it. It is time Americans stop choosing to be the worker bees (slaves) of the free and unfree world. Let every country take care of themselves. If their people can’t pull a civilization together, with their greedy corrupt politicians, then that is how nature entended it. So long, nice to have known ya!
Let us see which peoples create and orderly successful civilization and who are the last men and women standing. No intereference, no wars, just each country take care of themselves, no immigration, no money changing hands between countries. Then the hidden bankers, that are running the show can cast their lot and bet on who are the survivors, but they are not allowed to manipulate anymore. It is the ultimate reality show. Wait a minute, I think they call it Armageddon!
needmoinfo
Posted on May 19, 2012 at 6:52pmWhy the Summit. They need to go home and do instead of talk. I hope Obama isn’t throwing US money at them. Talk is cheap. I hear problems. I don’t hear answers. Tell me they aren’t here for money.
Report Post »doomytram
Posted on May 19, 2012 at 6:49pmWhat is this like the third year in a row that the Obamunist has had to warn the EU not to focus on austerity? Oblamer tells his minions (MSM) to tell us, his servants, to blame our woes on Greece. Keep talking more spending Blamer….. nobody trusts your Communist Ideology! It’s Bushes fault.
Report Post »Mandors
Posted on May 19, 2012 at 6:45pmThey look like grown up versions of the last eight people you’d ever pick for teams, and they’re talking about the economic equivalent of shuffling the deck chairs on the Titanic.
(Where’d I put those fallout shelter plans?)
Report Post »Marv Fox
Posted on May 19, 2012 at 7:52pmIf you find those fallout shelter plans, post them, please.
Report Post »dublinthewagons
Posted on May 20, 2012 at 8:12amLets have a show of hands from the people, that are amazed to find out the titanic’s swimming pool is still full of water.
Report Post »suedstate
Posted on May 19, 2012 at 6:37pmTHE-MONK
Report Post »Obama invited 4 of his relatives from Africa/
The-Monk
Posted on May 19, 2012 at 7:52pmI thought MO was in charge of that…..
Report Post »suedstate
Posted on May 19, 2012 at 6:30pmObummer had a new ally in Hollande?(France) well that should tell you everything you need to know about our president.
Report Post »Since Hollande is a full fledged Socialist(Communist) same thing.
I pray to God we make it to November.
The-Monk
Posted on May 19, 2012 at 7:56pmAnd once Hollande is drunk with power I’m going to start referring to him as “Hollande Sauced”.
Should take about 3 or 4 weeks…
Report Post »Netsurfer2
Posted on May 19, 2012 at 6:26pmI bet he is telling them that they need to print more Euro’s in order to make the market look fine! A trick that he has done since he walked into office! Yeah, print, print, print, tax, tax, tax! Now you see it now you don’t, but later pay the heavy price! Cash for cars and other means will just put more debt on the books for banks and show even more responsibilities later! LOL, ever hear of a 20 dollar loaf of bread? My bet is that you will later!
Report Post »REPUB1
Posted on May 19, 2012 at 6:25pmwhy are they ASKING our TRADER-IN-CHEIF about cutting SPENDING??????? why are WE The People Paying for this farce????? makes me want to PUKE
Report Post »REPUB1
Posted on May 19, 2012 at 7:09pmTRADER-IN-CHEIF meaning that he is trading our freedoms for his own greed for Power. we must end this in Nov . God Help U.S.
Report Post »Gizzy
Posted on May 20, 2012 at 12:57pmI refer to him as our Embezzler & Thief! He is nothing more than a quick change artist and a bad one at that!
Report Post »Mark0331
Posted on May 19, 2012 at 6:25pmAs the experience of the 1930s testified, a prolonged global downturn can have profound political and geopolitical repercussions. In the U.S. and Europe, the downturn has already inspired violent unsavory,leftist movements. It could also bring about trade wars and intense competition over natural resources, and the eventual breakdown of important institutions like European Union and the World Trade Organization. Even a shooting war is possible. If the G-8 thinks it can turn to the IMF, forget it, remember DSK, he leveraged the IMF to the hilt and lost his shirt on Portugal and Greece. Its game over for Europe.
Report Post »Maxim Crux
Posted on May 19, 2012 at 6:25pmThere they are…all the failures lined up in a row
Report Post »soybomb315
Posted on May 19, 2012 at 6:34pmit looked like they were about to board a space ship or something
Report Post »TRONINTHEMORNING
Posted on May 19, 2012 at 6:57pmI wish they would board a spaceship or something. Bunch of losers, the lot of em.
Report Post »needmoinfo
Posted on May 19, 2012 at 7:14pmMaxim Crux you nailed it on the head. They are all failures and of no use to each other. All talk and no action. Millions of Americans depending on one of these incompetents. They all got dressed up and met up at great expense to their financially strapped countries. It is time they put up or shut up.
Report Post »Why here? Obama has no hope or change.
The-Monk
Posted on May 19, 2012 at 6:20pmIf it’s the “G8” summit why are there 10 representatives there? Anyone know? I’m too tired to try look it up right now.
Report Post »REPUB1
Posted on May 19, 2012 at 7:11pm8 countries 10 reps
Report Post »The-Monk
Posted on May 19, 2012 at 8:26pmWhich Countries had 2 people (each) attending”
BTW, thanks for the reply. : )
Report Post »dublinthewagons
Posted on May 20, 2012 at 8:01amShhh. We aren’t smart enough to figure that out.
Report Post »Notice they are waving at the bus driver. He’s the to take them back to the funny farm.
Nine men and one set of cahones and they belong to the woman.