VIDEO: Fratto on CNBC – Is the U.S. still the global leader?
Tony Fratto on the structural problems facing the Eurozone:
“As a proud first generation southern European myself, they do work, they do want to see their economies grow just like everyone else – the problem in Europe, we do have to talk about growth, we definitely have to talk about long-term fiscal reality in the European countries, the Eurozone – the problem is when we talk about structural reforms in Europe what we’re really talking about is a fiscal authority to go hand-in-hand with a monetary authority. You can’t have this asymmetrical authority where Germany is this banker of Europe – and Germany benefits from that situation, and it becomes unsustainable, you know, we look at the wage disparity in southern Europe and northern Europe – you just can’t sustain itself.”
Fratto on U.S. involvement in the Eurozone crisis:
“We need to see a very strong, pro-growth – and I think Europe is coming around to this, along with long-term fiscal, as I said, fiscal reality. But in terms of, are they going to listen to Barack Obama – I think we heard some of that this morning from EU President Barroso, who basically said, we don’t need to be lectured on we need to do here. The best thing the United States can do and the President Obama can do, is to restart the engine of growth here, this is still the most important engine of growth in the world.”