U.S. hopes for ‘accelerated action’ from Europe
WASHINGTON — The White House said Tuesday it hoped for “accelerated” action in coming weeks ahead of the G20 summit in Mexico, on the euro crisis and shoring up debt-ridden banks.
“European leaders seem to be moving with a heightened sense of urgency and we welcome that. We are hoping to see accelerated European action over the next several weeks,” White House spokesman Jay Carney said.
“A movement to strengthen the European banking system will be of particular importance in this time period.”
Earlier, European finance ministers vowed to respond “speedily” to the continent’s debt crisis during a conference call among G7 ministers.
Carney also spoke a day before the European Commission was due to unveil new plans for winding up failing banks, one of the pillars of the EU’s drive towards an integrated eurozone “banking union.”
The idea, according to a presentation seen by AFP, is to avoid taxpayer bailouts and to ensure that essential functions — including working ATMs for the time it takes to deal with a bank collapse — are maintained across national borders.
The latest European Union response to the sovereign and banking debt crisis is to integrate the eurozone’s national banking systems in a bid to avoid investor flight or runs on banks in one country, such as Spain, dragging down the entire system.
The European crisis, which the White House fears could severely impact the US economy and hurt Obama’s hopes of reelection in November, will be a key issue at the G20 summit in Los Cabos, Mexico from June 17.