European Leaders

The U.S. and European leaders are working on a new agreement they say could expand transatlantic trade and investment, officials announced Wednesday morning. In a statement, President Obama and European Union leaders said they are launching talks within their governments to negotiate a Transatlantic Trade and Investment Partnership. “The transatlantic economic relationship is already the world's largest, accounting for half of global economic output and nearly $1 trillion in goods and services trade, and supporting millions of jobs on both sides of the Atlantic," according to a joint statement from Obama,  European Council President Herman Van Rompuy and European Commission President José Manuel Barros.

WASHINGTON -- As the new U.S. Treasury secretary, Jacob J. Lew is taking up a familiar and so-far thankless task: trying to persuade top European officials to shift from austerity to more growth-oriented economic policies. That was a major focus of Lew's first swing through Europe last week as Treasury head, and on Wednesday in Washington, he again pushed the message, albeit gingerly. In a speech, Lew contrasted the divergent post-recession fortunes of the U.S. and Europe, noting that the American economy had grown for 14 straight quarters and added millions of jobs, while the Eurozone's output had fallen over the last five quarters and some of its member countries are battling extremely high unemployment.

President Obama pushed European officials today to take quick action to end their debt crisis, highlighting the growing concerns about the impact their troubles could have on the U.S. economy. But while Obama announced that U.S. is “ready to do our part” to help Europe resolve its problems, the leaders didn't detail new plans as they emerged from a series of meetings at the White House. Much of the annual summit between the U.S. and the European Union focused on the euro-zone crisis, Obama told reporters after his meeting with European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

The U.S. and European leaders are working on a new agreement they say could expand transatlantic trade and investment, officials announced Wednesday morning. In a statement, President Obama and European Union leaders said they are launching talks within their governments to negotiate a Transatlantic Trade and Investment Partnership. “The transatlantic economic relationship is already the world's largest, accounting for half of global economic output and nearly $1 trillion in goods and services trade, and supporting millions of jobs on both sides of the Atlantic," according to a joint statement from Obama,  European Council President Herman Van Rompuy and European Commission President José Manuel Barros.

Leaders of the 12 governments of the European Community agreed Friday, over British objections, to a conference next year that will prepare the ground for a single European currency. The leaders also agreed, again over British objections, to adopt a non-binding "social charter" that spells out workers' rights in the 12 countries. Britain's Prime Minister Margaret Thatcher, who has long opposed a common currency and a common policy on labor, signed neither of the agreements.

President Bush will meet separately next month with British Prime Minister Margaret Thatcher and French President Francois Mitterrand to discuss the dramatic changes in Eastern Europe. Bush also will confer with Polish Prime Minister Tadeusz Mazowiecki next Wednesday at the White House. Bush will meet with Thatcher in Bermuda on April 13 and with Mitterrand in Florida on April 19.

Three European powers called for a new international conference on Afghanistan, hoping to accelerate and improve training of its security forces and lay out a timetable for Afghans to take back full control of their country. Britain's Gordon Brown, Nicolas Sarkozy of France, and Germany's Angela Merkel sent a letter to U.N. Secretary-General Ban Ki-moon calling for the meeting by the end of the year. The escalation of war and rising allied casualties have sparked criticism in North Atlantic Treaty Organization nations about the continued military commitment nearly eight years after a multinational coalition toppled the Taliban government and sent its Al Qaeda allies into hiding.

The leaders of France, Britain and Germany jointly urged their defense industries Tuesday to adopt by March 31 a "clear plan" to create giant, Pan-European companies that could compete with U.S. rivals.

European leaders stood shoulder to shoulder with Washington on Wednesday in deeming NATO airstrikes against Yugoslavia fitting punishment for aggression, but nervous neighbors in the Balkans and beyond feared that the attacks might provoke a wider conflict. "The fire in Kosovo could engulf the whole Balkans," Turkish Prime Minister Bulent Ecevit warned, echoing worries rife in the historically troubled region.

The leaders of Europe's three major powers failed Saturday to agree on a unified plan for postwar Iraq, but they called for a prominent United Nations role in rebuilding the country and a return of sovereignty to the Iraqi people. The two-hour summit between German Chancellor Gerhard Schroeder, French President Jacques Chirac and British Prime Minister Tony Blair underscored Europe's political differences as it seeks consensus on Iraq.

Stocks turned mixed after European leaders put off an aid payment to Greece, adding to investor worry over protraction of the Eurozone debt crisis. After initially opening lower, the Dow Jones industrial average turn slightly positive. The Dow added 5 points, essentially unchanged at 12,820. The Standard & Poor's 500 index was down 1 point, or 0.1%, at 1,379. The Nasdaq was down 10 points, or 0.3%, to 2,895. European finance ministers meeting in Brussels gave Greece an additional two years to meet conditions of its bailout package, the Associated Press reported.

WASHINGTON -- Federal Reserve Chairman Ben S. Bernanke said the central bank was hoping for the best concerning the European debt crisis but was ready to step in with more forceful action if needed. "We are hoping for the best ... but we are prepared in case things get worse to protect the U.S. economy and the U.S. financial system," Bernanke told reporters Wednesday. He defended the move by the Federal Open Market Committee on Wednesday to extend a program designed to lower long-term interest rates, a modest step in the face of slowing growth in the U.S. and abroad.

LOS CABOS, Mexico - President Obama back-slapped and smiled through another gathering of world leaders this week, but left a meeting of G-20 nations Tuesday in much the same place he was in when he arrived: waiting for Europe to prevent disaster. The Eurozone's debt crisis continues to present a growing menace to the American economy. And that puts Obama in a position all presidents hope to avoid, especially in an election year: His political fortunes could be at the mercy of events out of his control.

LOS CABOS, Mexico — Relief over the pro-euro currency vote in the Greek elections quickly faded Monday amid signs of persistent troubles for the Eurozone, as world leaders grappled with the grim reality that Europe's debt and political crises are far from over. Greek conservatives, who support a bailout for the struggling nation, scrambled to form a coalition government after winning national elections Sunday but fell short of an outright majority in Parliament. Stocks fell sharply in Italy, and the cost of borrowing for Spain reached a euro-era high amid investors' fears that it would become the next Eurozone nation to request a full-fledged government bailout.

Declaring that there is only "one president at a time," President Obama dismissed criticism from Mitt Romney's campaign over his handling of the European economic crisis and suggested his rival's team had commented without full knowledge of the situation. In a news conference at the end of the Group of 20 summit in Los Cabos, Mexico, Obama also denied fearing that his reelection chances could be tied to whether Europe puts its fiscal house in order. His primary focus, the president said, is the state of the American economy.

LOS CABOS, Mexico - European leaders appealed for patience from the world as they came under increasing pressure after market relief from the Greek election proved short-lived and Spain came under renewed financial strain. The presidents of the European Commission and European Council, in a news conference shortly after the opening of the G-20 summit, insisted that Europe has the political will to fix the continent's debt crisis. They said they were encouraged by Greece's election outcome, and indicated a willingness to help Athens, once a governing coalition is formed, hit financial targets to meet its bailout obligations.

This week, President Obama found out how much harder it is to sell economic stimulus packages in Europe than it is in Washington. Obama went to the Group of 20 summit in London hoping to persuade leaders of the world's biggest economies to boost government spending to counteract the global downturn. Backed by Japan and Britain, the administration argued that restoring growth around the world required a stronger fiscal push from other developed nations.

The Bush Administration, reacting to concerns that the two Germanys are moving too independently toward quick reunification, announced Tuesday that East and West Germany will hold their first formal meeting on reunification next week with the United States, Britain, France and the Soviet Union. The date and site of the sub-cabinet-level talks have not yet been announced.

The White House issued a statement Sunday congratulating Greece on its elections and urging new leaders to form a coalition in time to stave off further economic turmoil. "We hope this election will lead quickly to the formation of a new government that can make timely progress on the economic challenges facing the Greek people," Press Secretary Jay Carney said in a statement issued shortly after the pro-Europe New Democracy party claimed victory. The win was expected to be welcome news for foreign leaders who have been pushing Greeks to vote to remain in the Eurozone.

WASHINGTON — For months, President Obama has been urging his European allies to balance their zeal for spending cuts with policies to spur economic growth. His pleas have mostly been ignored. But now, as Obama prepares to host the Group of 8 industrialized nations' summit Friday and Saturday, his pro-growth argument has taken on new force — and some measure of desperation. The G-8 gathering at Camp David will cover an array of topics, but given the escalating crisis in Greece, the future of the Eurozone is expected to dominate the talks, raising the stakes for the summit and for Obama.