Europe plan may fall short, U.S. experts worry
By Greg Robb
WASHINGTON (MarketWatch) — European leaders may fall short in their efforts to defuse the region’s debt crisis, and any failure is likely to have a major impact for the U.S. economy, according to expert testimony to a House subcommittee released Monday.
“The actions expected to be announced [in Europe] this week may well improve the situation, but will be far from sufficient to resolve the core problems,” said Douglas Elliot, a fellow in Economic Studies at the Brookings Institution.
The path the euro crisis follows “is likely to be the main determinant of whether the U.S. goes back into recession,” he added.
Elliot’s remarks came in testimony prepared for delivery to a House Financial Services subcommittee hearing on Europe, scheduled for Tuesday morning. The prepared testimony was available on the subcommittee’s public website on Monday.