Obama, Merkel warn on Europe debt

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.

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.

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.”