Camp David: Leaders from the Group of Eight nations opened two days of economic and security discussions by considering ways to keep Iran from gaining nuclear weapons capability and to promote peaceful political transition in Syria, according to a US official familiar with the talks.
The G8 summit, hosted by President Barack Obama at the presidential retreat in Camp David, Maryland, began on Friday night with a dinner discussion of security matters ahead of meetings planned for yesterday on the global economy, said the official, who briefed reporters on condition of anonymity.
The talks so far have been "frank and useful," Obama said as he welcomed the leaders in remarks tele-vised from Camp David yesterday morning.
"We are addressing here the two biggest threats to all our economies and that is of course the Eurozone crisis but also the very high oil prices that translate into high prices at the pumps," UK Prime Minister David Cameron said yesterday after meeting with Obama.
Sense of urgency
The leaders are "making progress on both," Cameron said. "Particularly on the Eurozone, what is required is a sense of urgency and then clear actions for strong banks, strong deficit reduction plans," he told reporters.
Leaders were reserving most of yesterday for talks on how to mix pro-growth policies and austerity measures to manage the Greek and euro-region crises, along with discussions about oil supplies and prices.
Before leaving for Camp David on Friday, Obama called Europe's debt crunch "an issue of extraordinary importance" to the world economy and said he expected a "fruitful discussion" on how to couple fiscal responsibility with policies that promote growth.
Obama met privately in Washington before the G8 talks with France's new President Francois Hollande, who echoed the US president's position that growth must be a priority along with improved public finances. Hollande said he and Obama "share the same views" that Greece should stay in the euro region "and that all of us must do what we can to that effect."
Hollande also met on Friday in Washington with Cameron, who urged the French leader to back euro regionwide bonds. Cameron warned Hollande that he'll veto any attempt to introduce a European Union financial transactions tax.
Friction over how to approach the European debt crisis is shadowing the G8 talks. Obama and Hollande are urging more emphasis in Europe on pro-growth policies, while German Chancellor Angela Merkel has opposed any measures that might add to nations' debt burdens.
At the helm of Europe's biggest economy, Merkel has taken the lead in calling for fiscal discipline to combat the region's debt crunch.
When Obama greeted Merkel as she arrived at Camp David, she simply shrugged when he asked how she was doing.
"Well, you have a few things on your mind," Obama told her.
European Union leaders said on Friday they had the tools and the will to protect the euro and combat the bloc's debt crisis, seeking to reassure G8 members that are doing enough to contain financial turmoil that has spread from Greece to Ireland,
‘Determined'
For now, the EU is "determined to stay the course" and continue its efforts to cut deficits across the 27-nation union, while also honouring commitments made to Greece, European Council President Herman Van Rompuy told reporters on Friday.
"We will do whatever needed to guarantee the financial stability of the Eurozone," said Van Rompuy, who was joined at Camp David by EU President Jose Barroso.
Almost $4 trillion (Dh14 trillion) was wiped from global equity markets this month amid speculation that Greece will abandon the euro, while recession and loan losses led Moody's Investors Services on May 17 to downgrade 16 Spanish banks.
