Crisis: Eurozone worrying U.S., possible spread to Italy

Too big a challenge for Monti? WSJ. Huge problems, NYT

12 June, 10:37

From L-R Italy's Prime Minister Mario Monti, US President Barack Obama, British Prime Minister David Cameron, Russian Prime Minister Dmitry Medvedev and German Chancellor Angela Merkel sitting at a table during a recent G8 meeting in Camp David From L-R Italy's Prime Minister Mario Monti, US President Barack Obama, British Prime Minister David Cameron, Russian Prime Minister Dmitry Medvedev and German Chancellor Angela Merkel sitting at a table during a recent G8 meeting in Camp David

(ANSAmed) - NEW YORK - The eurozone crisis worrying the United States. The White house has welcomed the bailout of Spanish banks and the support the EU has promised to Madrid. But despite these interventions, concern is rising over the possibility of the crisis spreading to Italy. And of a leader who is considered to be credible and capable, Italian Premier Mario Monti, having to throw in the towel. Will Italy be the next to fall?, the New York Times wonders. The newspaper speaks of ''probably insurmountable challenges'' even for professor Monti, who is also dealing with ''the resistance to change that characterises Italian society and politics." It is no coincident, the prestigious New York daily underlines, that all reforms launched by the technocrat government are still on halt in Parliament, blocked by hard opposition to painful but necessary measures. ''It is not clear yet if Monti will be able to keep Italy from becoming the next domino to fall". The general fear is, that the 100 billion euros promised to Spain to rescue its banking system will not be enough, and that the fever will spread to Italy, making it the next to ask the international community for help, Bloomberg BusinessWeek underlines as well. The analysis made by the Wall Street Journal is on the same line. The Journal stresses that the challenges Italy is facing are probably ''too many for a man alone, even if that man is Mister Monti". According to the Wall Street Journal, the next crucial step is the upcoming election in Greece, which the newspaper calls the ''main threat'' to the future of the eurozone and beyond. The situation will be assessed at the next G20 meeting in Los Cabos, Mexico, on June 18 and 19. In this meeting, Europe will be asked to take more concrete measures during the summit of EU state and government leaders by the end of June. Ahead of this crucial summit, U.S. President Barack Obama is ''in close contact with the European capitals,'' said White House spokesman Jay Carney, who repeated that ''it is no mystery what we must do to deal with the enormous challenges we are facing and to revive the economy and unemployment: we must act at once. We know where the weak spots are." The message is aimed once again at Europe, but also at the Congress, which Obama has accused of blocking his reforms meant to boost the re-launch. From an electoral viewpoint, the general feeling in the U.S. is that the Obama administration is at risk. If the eurozone crisis deepens and even economies considered to be too big to fail start to collapse, the global consequences are beyond imagination. And the chances that the first Afro-American president in the U.S. history will be re-elected would fall to almost zero.(ANSAmed).

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