While the United States economy slowly crawls out of recession, Europe’s financial sector remains in a state of crisis. As the G-20 summit in Mexico comes to a close, President Obama will address the concerns of European leaders as he pushes to stabilize the global economy. Present at the summit are the leaders from Britain, France, Italy and Germany, all of whom Obama hopes to meet with privately.
Obama met with German Chancellor Angela Merkel on Monday, but a group meeting planned for Monday night was postponed after the G-20 working dinner ran late. As a part of the global economy, the U.S. economy is reliant on European stability to succeed. The president described the turmoil within the 27-nation European union as the most serious “headwinds” facing the U.S. market, as it works to fight unemployment and spark further growth. Of course, the resolution of future economic uncertainty is one of the lynchpins of Obama’s re-election campaign.
U.S. Treasury Under Secretary Lael Brainard explained the challenges facing the world leaders on Monday.
“I think we are seeing a clear-eyed perception on the part of all the leaders that have started to have conversations bilaterally, certainly in the negotiating room, about the risks of the global economy,” Brainard told USA Today. “I think you’ll see coming out of these meetings a high degree of resolve to work together to address financial market tensions and more clarity about the need to strengthen demand.”
During the conclusion of the G-20 summit today, the final communiqué issued should put forward the long term goals of the world leaders. An increased emphasis on growth in Europe, a solution to Greece’s debt crisis and a reinforced financial union among the continent’s banks are high on the agenda.
