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Obama warns Merkel on dangers of euro zone default

GERMAN Chancellor Angela Merkel shakes hands with US President Barack Obama during a welcoming ceremony on the South Lawn of the White House in Washington yesterday. Obama has said that if there were an 'uncontrolled spiral' and default in the euro zone, it would be disastrous for the global economy

"We think it would be disastrous for us to see an uncontrolled spiral and default in Europe, because that could trigger a whole range of other events," Obama told a joint conference with Merkel. "We need to make sure that all the best ideas are brought on the problem."

Obama also warned that Europe's debt crisis "cannot be allowed" to threaten the broader global economy.

Greece is looking to other euro zone members to defuse its debt crisis, and Germany will play a key role in charting a solution, Obama said.

Andrew Harrer

Irish Independent