Obama Says Greece Needs Europe’s Backing

Posted June 7th, 2011 at 9:10 pm (UTC-5)
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U.S. President Barack Obama says Greece needs the support from the rest of Europe if it is to emerge from its economic calamity.

Speaking at the White House next to German Chancellor Angela Merkel, Mr. Obama called Europe's economic problems a tough and complicated issue.

He said Greece needs structural reforms to make it more competitive and greater transparency in its economic system.

But he said it also needs private investment. He called on those holding Greek debt to decide along with European countries how that debt is managed.

The president said American economic growth depends on a sensible resolution of Europe's problems, calling default a disaster for the United States.

The European Union is planning another multi-billion dollar bailout for Greece after last year's $160 billion package with the International Monetary Fund did little to help pull Greece out of debt.

Greek Prime Minister George Papandreou is working to convince his Cabinet to agree to more deep spending cuts and tax hikes to satisfy the EU.

But ordinary Greeks are livid that they are being asked to make more sacrifices.