WASHINGTON (AFP) - U.S. President Barack Obama praised Italian Prime Minister Mario Monti on Thursday, saying he was boosting confidence across Europe and world markets with his economic rescue program.
The U.S. leader, who is concerned contagion from any worsening of Europe‘s crisis could impact his reelection prospects, also called for a stronger eurozone firewall to stabilize the continent’s battered financial system.
“I personally have great confidence in the prime minister‘s leadership and his ability to navigate Italy through this difficult time... and then to put it on a footing so it can grow and prosper in the long term,” Obama said after the two men held Oval Office talks.
Obama said he told Monti the United States wanted to do “whatever we can do to help stabilize the situation in the eurozone, including something that we both agree on, which is the need for a stronger European firewall.”
Such a firewall, Obama said, would “allow for a more stable path for repaying the debt, but also the promotion of a growth strategy within Europe.”
There is no suggestion however that the United States, which is only just enjoying its own economic recovery after the worst recession in decades, will provide substantial financial help to Europe’s firewall.
Obama hailed Monti, who took over as prime minister in mid-November amid a serious debt crisis, saying he had made a “strong start” and was promoting “very effective measures” in Italy.
“He‘s also been able to generate confidence throughout Europe and the marketplaces that Italy has a plan that takes seriously its fiscal responsibilities, but also emphasizes the need for structural reforms that can promote growth,” the U.S. president added.
The two men met as the focus was on Europe’s turmoil on Greece, after the country‘s leaders reached a last-minute deal on austerity cuts to secure a new eurozone bailout. Angry unions, though, vowed more strikes.
Since taking power, Monti has pushed through a draconian austerity plan and is now hoping to perform a massive liberalization program and reforms of the job market in the hope of future prosperity.
In exchange, the Italian premier wants EU partners to reinforce the eurozone’s rescue funds. He also will count on Obama‘s support when the U.S. leader speaks to counterparts in France and Germany.
But he said Thursday that his country was not in need of a bailout like those for Greece, Ireland and Portugal.
“Italy is not at a point where it needs financial assistance, but it needs better governance,” Monti told an audience at the Peterson Institute for International Economics, adding the “IMF is playing a key and very constructive role in the euro area.”
“I think it is right when it says that Europe should do its part of the job and build a firewall that is high enough” to stall contagion from the most troubled eurozone countries.
Monti has said the eurozone crisis may be moving towards a resolution but also warned that it has tested the continent’s cohesion, after reviving prejudices between the prosperous north and poor south.
