Updated on
Summary Obama pledged to work with Europe to on a package that balances growth with debt reduction.
U.S. President Barack Obama pledged at a summit on Saturday to work with Europe on a package that balances growth with debt reduction as world leaders try to prevent the worsening euro zone crisis from destabilizing the global economy.At the wooded Camp David retreat in Marylands Catoctin Mountains, Obama and leaders from other major economic powers are seeking ways to soothe financial markets after worries about Spains banking problems and the risk of a Greek exit from the euro zone sent world stocks to their lowest levels this year.A shirt-sleeved Obama opened the morning session on the global economy at a rustic lodge, promising to seek ways to restore healthy growth and jobs and address concerns in Europe.All of us are absolutely committed to making sure that both growth and stability, and fiscal consolidation, are part of an overall package in order to achieve the kind of prosperity for our citizens we all are looking for, Obama said.After an early morning meeting with Obama, British Prime Minister David Cameron said he detected a growing sense of urgency that action needs to be taken on the euro zone crisis.Contingency plans need to be put in place and the strengthening of banks, governance, firewalls - all of those things need to take place very fast, he told reporters.European Union leaders seemed keen to stress on Friday that they would stand firm in protecting their banks, after news of escalating bad loans raised the specter that rescuing Spains banks would crash the euro zones fourth largest economy.We will do whatever is needed to guarantee the financial stability of the euro zone, EU President Herman Van Rompuy said.Earlier French President Francois Hollande suggested using European funds to inject capital into Spains banks, which would mark a significant acceleration of EU rescue efforts. Balancing a growth agenda with efforts to lower government debt through fiscal belt tightening is a crucial part of the G8 discussions.Obama has aligned himself with Italys Prime Minister Mario Monti and the new French president in putting more emphasis on growth.
