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US President Barack Obama has said the European debt crisis cannot be allowed
to threaten the global economy, following White House talks with German
Chancellor Angela Merkel.
The leaders that the euro zone troubles "cannot be allowed to put the global
economic recovery at risk," he said.
The pair discussed Nato operations in Afghanistan and Libya, the Middle East
peace process and economic issues.
Later, Mr Obama was to award Ms Merkel the Presidential Medal of Freedom.
'Peace and prosperity'
Mr Obama has previously said that the problems affecting the eurozone are one
of a number of foreign "headwinds" affecting the US economy.
Government debt as a proportion of GDP has soared among eurozone nations in
recent years, reaching as high as 142% of gross domestic product in Greece in
2010.
Some affected countries have undertaken austerity measures that some fear will
hinder economic growth.
Greece, Ireland and Portugal have received international bailouts, and Moody's
this month put Greece's risk of defaulting on its sovereign debt at 50%.
Speaking at a joint White Hosue news conference on Tuesday Mr Obama said
Greece's debt was "significant" but said the country was undertaking "difficult
steps" to improve its situation.
He said the country must make structural reforms to make its economy more
competitive in attracting foreign investment.
And he warned of an "uncontrolled spiral" if the eurozone countries were
allowed to default on their debt.
Ms Merkel was welcomed on Tuesday morning at the White House with pomp and
ceremony, and the two leaders hailed co-operation between the two nations.
"The transatlantic alliance is the cornerstone - is the heart - of our efforts
to promote peace and prosperity around the world," Mr Obama said on Tuesday
morning when Ms Merkel arrived, "and Germany - at the heart of Europe - is one
of our strongest allies."
Mr Obama is scheduled to award Ms Merkel the Presidential Medal of Freedom,
America's highest civilian honour.
Mr Obama's relationship with the Germans began even before he took the White
House.
In July 2008, well before the election, Mr Obama gave a speech in Berlin to
200,000 people, Ms Merkel noted.
"In your address, you said America has no better partner than Europe," Ms
Merkel said on Tuesday. "And now it's my turn to say Europe and Germany have no
better partner than America."