FINANCIAL CRISIS

Obama praises Spain reforms but warns of austerity risks

US wants strong Europe to underpin its economy

US President Barack Obama on Friday praised the “intelligent and necessary” reforms being carried out by Italy and Spain but warned they would take time to bear fruit.

While Obama acknowledged the need for reform, he warned of putting too much emphasis on austerity and the expense of growth.

“Some countries have an unemployment rate of 10 or 15 percent. If that rate goes up to 20 or 25 percent (the case of Spain) that makes it harder to pay off your debts. The markets will respond to that by making it more expensive for those countries to borrow,” Obama said at a White House press conference.

“If they are just cutting and cutting and cutting and their unemployment rate is going up and up and up and people are cutting back on spending, that delays the economic reforms,” he added.

Obama stressed the need for a strong Europe in order to maintain healthy demand for US exports.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

LATIN AMERICA

Marina Silva falls prey to her own contradictions

Observers criticize new Brazilian Socialist Party presidential candidate for caving in to religious pressures

On the trail of Venezuela’s food smugglers

EL PAÍS takes a trip with a ‘bachaquero,’ who sells subsidized goods in Colombia at market prices

United States punishes Mexican sugar producers

Sonia Corona Mexico City

Government accusing Mexico of unfairly subsidizing production of sweeteners

Mexico tries to stem flow of migrants to the United States

Verónica Calderón Mexico City

Civic organizations say new measures make crossing even more treacherous

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana