Europe Resolution Critical to Obama Re-Election

[dkf]

President Barack Obama’s path to re- election may pass through Berlin and Paris.

The European debt crisis that German Chancellor Angela Merkel and French President Nicolas Sarkozy are struggling to contain looms as the most visible threat to the U.S. economy as Obama heads into his re-election campaign.

European leaders took a critical step toward curbing the crisis yesterday, agreeing to expand their rescue fund. Further details need to be worked out, and the negotiations could still fall prey to political infighting or an investor revolt.

Obama has limited capacity to influence the discussions even with the significance of the outcome for the U.S. economy and the his re-election prospects. He will meet with European leaders at the Group of 20 summit in Cannes, France, on Nov. 3- 4.

http://www.bloomberg.com/news/2011-10-28/european-debt-crisis-resolution-critical-to-obama-economy-in-election-year.html