The leaders of eight of the world's biggest economies agreed that they must work together to stop the economic crisis afflicting the eurozone from spreading worldwide, and jeopardizing fledgling recoveries in the US and elsewhere. However, standing in the way of a breakthrough are disagreements over how to bolster Europe's economy and avoid a broader catastrophe. The turmoil in Greece is draining confidence in the 17 countries that use the euro. Borrowing costs are up for the most indebted governments. Depositors and investors are fleeing banks seen as weak. Unemployment is soaring as recession grips nearly half the eurozone countries. And global markets are on edge. Meeting at the White House Friday, French President Francois Hollande and President Barack Obama agreed that managing the eurozone debt crisis is critical to global financial health. In advance of the talks, German Chancellor Angela Merkel struck a conciliatory note this week. She said in a television interview this week that she was open to measures to help stimulate Greece's economy as long as the country honors its commitments to shrink its debts. US Treasury Secretary Timothy Geithner applauded the softer tone emerging among European leaders. “You are seeing them talk about a better balance between growth and austerity, meaning a somewhat more gradual, softer path toward restoring fiscal sustainability,” Geithner said. The shift shows that European leaders recognize that countries can't increase their economic growth if they're forced to focus solely on cutting spending and reducing debts. Geithner said European countries would benefit from investment in public works projects, like roads and schools. At this weekend's talks, non-European leaders will seek assurances that European leaders could contain the damage from a banking meltdown in Greece. They worry about a panic that could spill into Portugal, Spain and other indebted European countries - and to nations outside the continent whose banks are connected to Greek banks. British Prime Minister David Cameron said they must work together to stop the economic crisis afflicting the euro zone from spreading worldwide. In an article published Friday, Cameron called for negotiations on an ambitious US-European Union trade agreement to begin next year. “Together, the EU and US account for almost a third of global trade, so a deal with the US could potentially be bigger than all the other EU trade deals on the table,” Cameron wrote in an opinion piece for PoliticsHome, a political website.
