Obama says the world has avoided an economic collapse

Published: Friday, July 10, 2009 10:52 p.m. MDT
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L'AQUILA, Italy — Lasting worldwide recovery "is still a ways off," President Barack Obama declared Friday, but he also said at the conclusion of a global summit that a disastrous economic collapse apparently has been averted.

Obama said world leaders had taken significant measures to address economic, environmental and global security issues.

"Reckless actions by a few have fueled a recession that spans the globe," Obama said of the meltdown that began in the United States with a tumble in housing prices and drastic slowing of business lending. The downturn now threatens superpowers and emerging nations alike.

Obama urged national leaders to unite behind a global recovery plan that includes stricter financial regulation and sustained stimulus spending.

"The only way forward is through shared and persistent effort to combat threats to our peace, our prosperity and our common humanity wherever they may exist. None of this will be easy," Obama told a news conference at the end of the Group of Eight summit of major economic powers.

The president rejected suggestions that the summit fell short of expectations by failing to call for tough new sanctions on Iran for its crackdown on democracy advocates after its disputed presidential election.

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"What we wanted was exactly what we got, which is a statement of unity and strong condemnation," Obama said. He said the leaders' declaration was even more significant because it included Russia, "which doesn't make statements like that lightly."

Obama said world leaders will re-evaluate their posture toward Iran at a meeting in Pittsburgh in September of the world's 20 major industrial and developing economies.

He cited "the appalling events surrounding the presidential election" and said the world would "take stock of Iran's progress" and watch its behavior.

Leaders have made clear that for Iran to take its "rightful place" in the world, the country must adhere to international standards and behave responsibility, Obama said.

The president was next turning to more photogenic events: a meeting with the pope and a stop in Africa.

Obama, his wife and senior advisers met Pope Benedict XVI and exchanged gifts shortly before leaving Italy late Friday. The 30-minute meeting Vatican audience was described by both sides as positive — constructive talks between two men who agree on helping the poor and pushing for Middle East peace but disagree on what the Vatican considers prime ethical issues.

"It's a great honor," Obama said, greeting the pope and thanking him for this first meeting.

Recent comments

suffers from a terrible case of 'god complex' wherein he thinks he is...

bama  | July 11, 2009 at 12:42 p.m.

"Mission Accomplished"

Steve | July 11, 2009 at 12:40 p.m.

He is not the savior, nor is he about to save us from economic...

KM | July 11, 2009 at 9:41 a.m.

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Vincenzo Pinto, AFP/Getty Images

Italian Premier Silvio Berlusconi, left, French President Nicolas Sarkozy, Russian President Dmitri Medvedev, U.S. President Barack Obama and U.N. chief Ban Ki-moon.

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