Today in Brussels, Jacob Lew discussed European financial problems with European Union leaders, which continue to hurt the global economy. Lew, who took office as U.S. Treasury Secretary in February, fully understands the strong influence the European economy has on our own economy. He realizes the issues in Europe cannot exist independent of the US economy and therefore we have the incentive to help alleviate this issues as best we can.
European Council President Herman Von Rompuy is working with Lew to try to bring European banks under a unified banking union. This would give the EU more power to stabilize failing banks without having to go through individual national governments. Increased efforts in this area would help prevent flare-ups in the financial crisis like we saw recently when the bailout efforts in Cyprus failed.
Lew is especially concerned about the European economy in light of recent disappointing unemployment statistics. Although the unemployment rate dropped to 7.6%, only 88,000 jobs were added to the economy last month. Lew is concerned about sources of demand abroad during a tough period of unemployment.
Annie Howard
Sources:
http://online.wsj.com/article/SB10001424127887323550604578410310488074782.html?mod=WSJ_Deals_LEFTTopStories
http://www.guardian.co.uk/business/2013/apr/08/eurozone-crisis-portugal-spending-cuts-bailout#block-5162c204b579a0655085fc6c
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