European Economic Woes Visit Obama as he Hosts G-8 Summit at Camp David
President Obama is set to host global leaders this weekend at Camp David, where the European debt crisis threatening the global economy and Obama’s reelection will overshadow everything else.
The president’s reelection largely hinges on the economy, and the crisis in Europe is a growing danger if he is to avoid the fate of other international leaders run out of office due to economic woes.
Greece’s exit would throw into question the overall stability of the eurozone, as investors begin to look to other ailing nations like Spain and Ireland, wondering if they might be the next to follow suit.
“It’s actually a break point in terms of changing people’s psychology,” said Michael Klein, a nonresident scholar at the Brookings Institution. “As bad as things have been over the last two years now, the fact that no country has yet exited probably has in some ways bolstered people’s hopes that Europe could pull through.
“Once one country exits, the possibility of a second country exiting or a third looms much larger,” added Klein, a professor of international economic affairs at the Fletcher School at Tufts University.
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