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GreekReporter.comGreek NewsEconomyU.S. Urges EU Leaders to Compromise with Greece

U.S. Urges EU Leaders to Compromise with Greece

obamaThe U.S. government urges Eurozone leaders to make compromises with Greece, noting that a possible Grexit could damage the global economy. Over the last two weeks the new Greek government has received Barrack Obama’s support, while Eurozone leaders, mainly Angela Merkel in Germany are pressing the country to extend its bailout program and continue down the austerity road.
“There isn’t a special initiative. I don’t think our attitude has changed but what’s changed is that suddenly the situation in Greece is looking more problematic,” stressed a senior U.S. official.
The issue will be discussed on Wednesday at the G20 finance ministers meeting in Istanbul, where U.S. officials are expected to raise their concerns regarding the stand-off. Furthermore, U.S. President Barrack Obama has scheduled a meeting with German chancellor Angela Merkel in Washington, in order to discuss the situation.
Since the crisis broke out in Europe, more than five years ago, the Obama administration has intervened multiple times, for example when the U.S. President convinced his German counterpart, Merkel to back Greece’s bailout program in May 2010. However, U.S. interventions have not always been welcomed by the Eurozone.
According to U.S. Treasury officials, the world economy growth remains weak and that will be one of the main points emphasized by Jack Lew, U.S. Treasury secretary, at the G20 meeting in Istanbul, Turkey.
Over the last two weeks, Obama has publicly supported the new Greek PM Alexis Tsipras’ decisions to end austerity in Greece, and he even noted during a CNN interview that “you cannot keep on squeezing countries that are in the midst of a depression.”
U.S. officials stressed that the country is not attempting any form of mediation, however, they are willing to provide advice to both sides. “There are limits to how much austerity a society can withstand,” noted a U.S. official.
Furthermore, U.S. officials are worried that if Germany and the rest of the Eurozone does not compromise with the new Greek government, then that would lead to the country’s exit from the Eurozone (Grexit), a fact that is not worrying according to the German government who believe that “a Greek exit from the euro is a survivable, though undesirable, outcome.” The U.S., however, fears that such a move would lead to economic upheaval within the Eurozone.

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