Obama urges Europe to act swiftly to prevent economic collapse
Europe must act quickly to stem its economic crisis, president Barack Obama said on Friday as he called on European leaders to strengthen their banks and urged Greece to remain in the eurozone.
Obama addressed reporters at the White House as it emerged that Spanish officials would meet EU officials this weekend and ask for help shoring up their troubled banks.
"There is a path out of this challenge. These decisions are in the hands of Europe's leaders; they understand the urgent need to act. There are specific steps they can take right now to prevent the situation from getting worse. One of those steps is taking clear action as soon as possible to inject capital into weak banks," said Obama.
The president said he had been in "constant contact" with European leaders and his own financial advisers as the crisis developed. He urged Greece to act to stay within the eurozone before elections next week arguing that "hardships will likely be worse" if it leaves.
Obama said the US was strong enough to absorb "some of the shocks from across the Atlantic" but that the European crisis was still a threat to America's fragile recovery.
"If Europe goes into recession, that means we are selling fewer goods, fewer services – and that's going to have some impact," he said.
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