Those in Europe wanting an end to austerity got a significant boost on Friday when US President Barack Obama backed growth.
Obama, in an election year, is worried the European crisis could knock back the US economic recovery at a time he needs to show it has turned the corner.
“These decisions are fundamentally in the hands of Europe’s leaders, and, fortunately, they understand the seriousness of the situation and the urgent need to act. I’ve been in frequent contact with them over the past several weeks, and we know that there’re specific steps they can take right now to prevent the situation there from getting worse.
The decisions required are tough, but Europe has the capacity to make them. And they have America’s support. Right now, their focus has to be on strengthening their overall banking system.
In addition, they’re going to have to look at how do they achieve growth at the same time as they’re carrying out structural reforms that may take two or three or five years to fully accomplish,” he said in Washington.