Leaders of most industrialized nations, members of G8, are meeting this weekend in the United States at Camp David, to search for solutions to the debt crisis in Europe, where concerns about the possible exit of Greece from the euro area are increasing, writes Reuters. The host of the meeting, President Barack Obama has repeatedly asked European leaders to do more to stimulate growth concerned that problems in Europe may affect the U.S. economy and his chances of winning a new presidential term in November.
British Prime Minister David Cameron, who has been increasingly vocal in calls for Europe to do more to solve the debt crisis, will tell participants that they should work together to stop the contagion. The meeting is not expected to bring major economic policy decisions, but some officials said Obama hoped to trigger a discussion for a comprehensive approach to addressing the crisis. Obama is trying Friday to establish a connection with the new French president Francois Hollande, during a meeting at the White House before going to Camp David.
Hollande, sworn in this week, has already made waves by challenging the focus of Europe on austerity measures, but also by stating that he would withdraw combat troops from Afghanistan by the end of this year. Obama may use the meeting at the Oval Office to encourage the French Socialist leader to rethink plans on Afghanistan. The two leaders, who expressed support for pro-growth policies in Europe, are expected to issue a joint decision on the euro area crisis, which will dominate G8 talks. The Obama administration has spent heavily to combat the recession of 2007-2009 and Hollande wants to invest in infrastructure to create jobs.
Cameron wants decisive measures from Europe, Canadian Prime Minister Stephen Harper was an ardent critic of EU policies, while Italian Prime Minister Mario Monti has been demanding profound measures of growth, even before Hollande has expressed the same opinion. German Chancellor Angela Merkel, who insists that the debt relief programs can not be mitigated, could become a singular figure. G8 Summit will take place while the Greeks massively withdraw money from banks, fearing that the country could leave the euro area.
There are great fears on the financial markets about the future in the euro area and the Spanish banking sector is subjected to significant pressure. The dollar is rising, shares are falling, and the cost of German debt reached a new record low Friday, as investors prefer safe investments.
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