March 15, 2009 in City

Obama: Europe, U.S. not at odds

He, Brazil president focus on economy
Darlene Superville Associated Press
 
Associated Press photo

President Barack Obama listens while Brazil’s President Luiz Inacio Lula da Silva responds to a question in the Oval Office of the White House on Saturday.
(Full-size photo)

WASHINGTON – President Barack Obama on Saturday downplayed divisions between the U.S. and Europe over how to tackle the world’s financial crisis and said China should have “absolute confidence” that its sizable investments in the United States are safe.

In a conversation focused heavily on the economy, Obama met in the Oval Office with Brazilian President Luiz Inacio Lula da Silva. It was the latest in a series of talks the president has had with his counterparts around the world before a pair of international meetings where the economic crisis will dominate.

Both leaders will attend the Group of 20 countries summit in London on April 2, and the Summit of the Americas in Trinidad in mid-April.

Obama said the notion that the U.S. and Europe are already taking sides, with America pushing for more stimulus spending and European nations favoring tighter regulation of the financial industry, is a “phony debate.”

“I can’t be clearer in saying that there are no sides,” Obama told reporters after the meeting. He said a full range of approaches, including stimulus spending such as his own recently enacted $787 billion package, and financial regulation, are needed to help revive the global economy.

Financial regulation “is front and center” among the issues he wants to deal with, he said.

“In my mind, at least, there is no conflict or contradiction between the positions of the G-20 countries and how we’re going to be moving forward,” Obama said, adding that differences in details were being worked out. “I expect to have a productive meeting.”

Treasury Secretary Timothy Geithner, who had pushed for Europe to match Washington’s $787 billion package of spending and tax cuts, said Saturday that there was “broad consensus globally on the need to act aggressively to restore growth to the global economy.” Geithner spoke in London at a preparatory meeting of finance officials from the rich and developing G-20 countries.

At home, Obama also sought to assure China that its investments in the U.S. are safe.

Chinese Premier Wen Jiabao had said Friday he was concerned about the safety of the estimated $1 trillion his country has invested in U.S. government debt. China is Washington’s biggest foreign creditor, and Obama’s administration is counting on the Chinese to help pay for the $787 billion economic stimulus package by buying U.S. bonds.

Wen – and other investors – needn’t worry, Obama said.

“There’s a reason why even in the midst of this economic crisis you’ve seen actual increases in investment flows here into the United States,” Obama said. “I think it’s a recognition that the stability not only of our economic system, but also our political system, is extraordinary.

“I think that not just the Chinese government, but every investor, can have absolute confidence in the soundness of investments in the United States,” he added.

Brazil’s Lula said the crisis gives world leaders an “extraordinary opportunity” to demonstrate to their people that they are capable of handling major issues. He said it was critically important to create jobs, create incomes and boost consumption.

“We are in a large ship and water is leaking,” Lula said, speaking through a translator. “Now is the time to fix the leaking and make the economy go back to the tracks.”

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