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White House encouraged by eurozone summit

29 June 2012, 19:54 CET
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(WASHINGTON) - The White House on Friday welcomed "encouraging" moves by eurozone leaders to boost flagging economies along with their long-term plan for a tighter fiscal and banking union.

"We welcome the indications that euro area leaders made progress last night as they grapple with these challenges," said Jay Carney, spokesman for President Barack Obama, aboard Air Force One.

"It is encouraging that leaders are looking at ways to reduce immediate financial market stresses and to undertake long term reforms and integration plans," Carney said as Obama flew to Colorado to examine the aftermath or raging wildfires.

"What happens in the eurozone affects the American economy and it is in our national interests for Europe to deal with this crisis and take the actions necessary to hold the eurozone together and rebuild confidence, stability and growth."

"We are encouraged by some of the progress made last night," Carney said, referring to breakthroughs at a eurozone summit in Brussels.

The top US officials and aides working on Obama's re-election campaign are nervous that any failure by Europe to mitigate its debt crisis could trigger financial contagion and adversely impact the unsteady US economic recovery.

At the end of often volatile talks stretching almost until dawn in Brussels, EU president Herman Van Rompuy hailed a "real breakthrough" to calm financial markets and reshape the eurozone to prevent future crises.

The accord paves the way for the eurozone's 500-billion-euro ($630 billion) bailout fund to recapitalize ailing banks directly, without passing through national budgets and thus adding to struggling countries' debt mountains.


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