U.S., Europe clash over recovery plans

BRUSSELS, March 10 (UPI) -- Sixteen European nations said they oppose U.S. President Barack Obama's push to increase stimulus spending in the European Union.

"The 16 euro-area ministers agreed that recent American appeals insisting that the Europeans make an additional budgetary effort to combat the effects of the crisis was not to our liking," Luxembourg's Prime Minister Jean-Claude Juncker said Monday following a meeting with financial leaders.

"We would not want to give the impression that we were considering implementing further recovery packages. Europe and the eurogroup have done what they needed to do," Juncker said, the EU Observer reported Tuesday.

Larry Summers, Obama's top economic adviser, Monday said "There's no place that should be reducing its contribution to global demand right now."

The striking policy difference will likely result in a clash at the Group of 20 summit meeting that begins April 2, the Observer said.

It comes amidst continued despair over the economic downturn.

"There is no obvious indication that gives us any reason to believe that the situation is turning around. All the forecasts that we have available are extremely gloomy so this is a deep recession that we are going through," Juncker said