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Obama: Austerity not a strategy for Greece

Prime Minister Antonis Samaras of Greece and President Barack Obama meet in the Oval Office at the White House on August 8, 2013 in Washington, D.C. UPI/Jim Lo Scalzo/Pool
1 of 2 | Prime Minister Antonis Samaras of Greece and President Barack Obama meet in the Oval Office at the White House on August 8, 2013 in Washington, D.C. UPI/Jim Lo Scalzo/Pool | License Photo

WASHINGTON, Aug. 8 (UPI) -- President Obama Thursday welcomed Greek Prime Minister Antonis Samaras to the White House, saying "jobs and growth" must be the Mediterranean nation's focus.

"The friendship, the bonds between the United States and Greece are as deep and as broad as any relations that we have," Obama said, noting the United States owes "a great debt to Greece, our form of government."

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Obama said in dealing with Greece's economic challenges, "we cannot simply look to austerity as a strategy."

"It's important that we have a plan for fiscal consolidation to manage the debt, but it's also important that growth and jobs are our focus, because we know from history that those countries that are growing, those countries where employment is high and people are increasing their productivity and feel as if the economy is moving forward, those countries have an easier time reducing their debt burdens than countries that -- where people are feeling hopeless. ...

"But we're confident that Greece can succeed. And the stakes are high for not only Greece, but also Europe and the world economy," Obama said.

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Samaras lamented Greece's 60 percent youth unemployment rate and total unemployment rate of 28 percent and said "jobs for everyone is the number one priority, especially to our youth, because everything we are doing has to do with our younger generation."

Samaras also noted there was a "window of opportunity" for progress on the problem of Cyprus, as long as all parties "abide by the international laws and the decisions of the United Nations."

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