English subtitles for clip: File:11-3-11- White House Press Briefing.webm

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Mr. Carney:
Good afternoon,
ladies and gentlemen.

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Thanks for being
with us here today.

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I have with me for the
briefing, on my immediate left,

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Mike Froman, Deputy National
Security Advisor for

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International Economic Affairs;
and next to him, Ben Rhodes,

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Deputy National Security Advisor
for Strategic Communications.

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They can give you a briefing on
events so far here at the G20

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and what we anticipate to
happen in meetings as the

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summit continues.

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With that, I'll turn it
over to Ben to start.

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And I'll remain if you have
questions on other subjects.

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Thanks.

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Mr. Rhodes:
Thanks, everybody.

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I'll just make a few comments
and then turn it over to Mike,

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who can do a bit more of a setup
of kind of where we think things

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stand and what we expect over
the course of the next couple

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days in the very
important G20 summit.

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What I'll say by way of
introduction is, as you know,

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this morning the President met
with President Sarkozy and with

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Chancellor Merkel.

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This continued, again, very
close consultations that the

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leaders have had for many months
about the crisis in the eurozone

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and about the steps that are
being taken to address that

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crisis, leading up to the G20,
and the role that the G20 can

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play, again, in supporting the
implementation of a plan that

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can deal with the eurozone
crisis as well as a number of

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other aspects of the G20 agenda
that Mike can speak about.

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So, again, I think the meetings
focused overwhelmingly on the

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economic agenda,
on the G20 agenda.

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Both leaders were able to brief
and update the President on

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their discussions yesterday
and how they see things in the

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aftermath of the agreement
they reached on October 27th,

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while also discussing
and sharing ideas,

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as they have for many weeks,
about what the best way forward

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is in terms of the
implementation of their

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agreement as well as
dealing with, again,

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the broader G20 agenda that
Mike can walk you through.

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So that was the dominant
piece of both meetings.

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There were brief conversations
at the end on some other

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political and security issues
related to Iran and the

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Middle East.

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But again, I think we're here
primarily to deal with the need

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to get the global economy
on a firmer footing.

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And Mike can speak to you about
the global economic agenda that

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we have here, and then we can
take your questions on the

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President's meetings
or anything else.

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He's going now into obviously
the G20 sessions throughout the

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remainder of today and tomorrow.

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And then after the G20
concludes tomorrow,

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in addition to his
press conference,

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we have a bilateral meeting
planned with the President of

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Argentina, and then we have a
bilateral event with President

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Sarkozy that's going to honor
the service of American and

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French service members
in the Libya operation,

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which came to an end this week,
as well as honoring the alliance

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between the United States
and France over many years.

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Mike.

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Mr. Froman:
Thanks, Ben.

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The President, as Ben said, is
just starting the G20 session as

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we speak, and the first session
will focus largely on the

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situation in the global economy.

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Obviously the eurozone crisis
is at the center of that

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discussion, but there will also
be discussion more generally

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about the broad G20 agenda that
was launched in many respects in

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Pittsburgh, around the
framework for strong,

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sustainable and balanced growth,
around financial regulatory

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reform and further
steps to further that --

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further steps to implement
new regulations globally,

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as well as a number of
other global issues --

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development, food
security, et cetera.

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I would say, over the
last couple of days,

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there's been a lot of
preparation for this meeting --

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finance deputies
have been meeting,

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sherpas have been meeting -- and
I think we're making very good

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progress and expect to continue
to make progress over the course

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of the next day and a half
across the whole series

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of issues.

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Just to flag a few of them, you
will recall that last year there

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was a debate around growth, and
I think you'll find this year

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there's been movement towards
a strategy on growth and jobs,

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including specific actions that
countries will take to try and

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spur on growth and jobs in the
short run while addressing over

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the medium term the need to have
sustainable fiscal situations.

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On the regulatory reform side,
following up on Dodd-Frank,

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there's a number of developments
to help internationalize the

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race to the top on the
regulatory reform agenda,

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and those will be
discussed as well.

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And with regard to
the eurozone crisis,

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obviously there's a
great deal of interest.

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It is a European crisis and our
European partners are very much

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focused on addressing it and
taking steps to resolve it,

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took very important
decisions last week,

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and there will be a lot of
interest among the other leaders

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about the further elaboration
and the full implementation of

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the plan that was launched last
week and that we expect to form

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the basis of much of the
discussion over today --

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including how the G20 as a forum
for bringing countries together

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can be supportive of
the European efforts.

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So with that, why
don't I open it up.

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The Press:
There's a lot of talk that
the Greek Prime Minister might

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actually resign today.

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Can you tease out for us what
the consequences would be

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potentially for Europe and for
the U.S. if that were to happen?

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Mr. Froman:
I'm not going to comment
on internal Greek politics.

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I'd only note, of course, that
he was here last night and met

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with President Sarkozy,
Chancellor Merkel,

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and others to discuss how
best to take forward the

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eurozone plan.

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Clearly there's been
developments over the last

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couple of days around the
referendum that underscored the

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need for the further elaboration
and full implementation of that

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plan as soon as possible.

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And I can say from the meetings
that the President had this

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morning with President Sarkozy
and Chancellor Merkel,

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they are very much focused on
the steps that need to be taken

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immediately and in the near
future to ensure that plan

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is successful.

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The Press:
Can I ask something you
might be able to comment on,

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which is the President, in
his meeting with Sarkozy,

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said that they discussed
developments with Greece and how

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"we can work to help
resolve the situation" --

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we, I assume meaning the U.S.

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So what help is
the U.S. offering?

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What can the U.S. offer?

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Mr. Froman:
Well, I'd put it in
a larger context.

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One of the functions
of the G20 --

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and when the President advocated
for the G20 to become the

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premiere forum for international
economic cooperation in

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Pittsburgh and that
was accepted --

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is that this is a forum for
bringing countries together to

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deal with global economic issues
and other global challenges.

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Clearly, the eurozone crisis,
while it's a European crisis and

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it's for the Europeans to solve,
does have global implications.

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And there is a great deal of
interest here by all the members

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of the G20 in seeing what
they can do to be supportive.

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From our own experience,
the U.S. experience,

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from two years ago with dealing
with the 2008-2009 financial

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crisis, we have a number of
lessons to be learned that we

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have shared with
the Europeans --

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the fact that the U.S. and
the administration acted with

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overwhelmingly force in terms
of putting up the necessary

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resources to deal
with the crisis;

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that we insisted on robust
stress tests and then insisted

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that financial institutions
dramatically increase --

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in fact, double their capital.

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These are all lessons that are
relevant to the current crisis.

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And one of the themes of the
conversations that the President

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has been having with his
European counterparts over many,

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many months has been to share
the lessons of our experience

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with the Europeans as they
work through their own issues.

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So one of the many things that
we're contributing to this

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process is our experience, ideas
for moving forward based on that

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experience, and
support in doing so.

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The Press:
What is the administration's
view of the European demand that

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the Greek referendum be tied to
Greece staying in the eurozone?

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Do you think that's
a good way to go?

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Have you taken any steps to
prepare for the worst outcome of

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a Greek default triggering
another wave of global

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financial turmoil?

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And President Sarkozy mentioned
after his meeting with President

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Obama that Washington was coming
to sort of his way of thinking

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on a financial transactions tax.

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Could you talk a bit about that?

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Mr. Froman:
Well, again, on the
Greek issue itself,

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let me just say that the
situation there underscores the

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need to move rapidly towards
the full elaboration and

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implementation of the plan,
including having a firewall that

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is sufficiently robust and
effective in ensuring that a

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crisis does not spread from
one country to another.

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And that has been a consistent
message that the President and

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Secretary Geithner shared with
their counterparts here in

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Europe throughout this period.

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On the financial transaction
tax, I'd say the following --

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and it came up in conversations
this morning both with President

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Sarkozy and with
Chancellor Merkel.

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And the President made clear
that he shares the objectives

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that Chancellor Merkel and
President Sarkozy have in

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ensuring that the financial
sector contributes an

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appropriate share to the
resolution of crises.

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We have, in the U.S., and the
administration has proposed one

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approach to that through
the financial crisis

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responsibility fee.

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The Europeans have
another approach.

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Both share in commonality the
idea that the financial sector

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has an appropriate role to
play in contributing to the

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resolution of the crisis, and I
think there is broad consensus

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between the Europeans that the
President met with this morning

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and ourselves about the
ability of each to go --

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to each pursue this in their own
way in whatever way they see to

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be most effective.

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Mr. Rhodes:
I just had one thing
on the -- your --

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on the Greece part of this,
which is that, again,

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I think it's important to note
that the program that was agreed

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to by European leaders
last week had several

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different components.

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One of them was dealing
with the Greek situation.

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But there were additional
components to include a firewall

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that would be sufficient to
prevent a contagion to other

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countries and markets.

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And that's why we supported
this comprehensive package that

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needed to be fully
implemented across the board.

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So there's an interconnection
here between the efforts that

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are being undertaken as
it relates to Greece,

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but also the efforts that are
being undertaken to establish a

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sufficient firewall that can
deal with potential contagion

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beyond that.

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So what the President was able
to do in his meetings this

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morning is get an update
from the leaders about their

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discussions with the Greek Prime
Minister and their plans --

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which they made very clear as it
relates to the Greek referendum

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and how that impacts the
implementation of the agreement

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-- but also to discuss these
other components as well,

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including a sufficient
firewall to prevent that kind

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of contagion.

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The Press:
The President said that there
was progress in Europe but there

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is a lack of detail
in the plans.

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What kind of details are you
looking for in these meetings

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from the European side?

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I mean, many things
have been discussed --

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the EFSF, the $1.4 trillion,
and different approaches.

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So what kind of details are you
looking for to consider that

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this summit will
bring some progress?

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Mr. Froman:
Well, I think what the President
said is that the decisions last

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week were very important in
terms of making progress and

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laying a foundation, and now we
needed the further elaboration

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and their full implementation.

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And the Europeans, of
course, themselves,

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are very much focused on that,
and they have been meeting

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around the clock with technical
experts and others to flesh

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exactly how the EFSF would work,
how it would relate to other

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institutions; the bank
recapitalization plan that was

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also announced; and of course
working with the creditors of

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Greece to come up with a
solution there as well.

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So the Europeans have taken the
decisions that they took last

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week and have been working
to flesh those out.

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00:13:23,033 --> 00:13:27,063
And I imagine the leaders today
will be eager to hear further

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00:13:27,066 --> 00:13:29,766
details about how
that process is going.

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00:13:29,767 --> 00:13:32,237
The Press:
But what could be progress
from the U.S. viewpoint?

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00:13:32,233 --> 00:13:34,763
Mr. Froman:
The progress is the further
elaboration and the full

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00:13:34,767 --> 00:13:37,097
implementation of the
decisions taken last week.

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00:13:37,100 --> 00:13:41,200
But it goes to everything from
how will the firewall actually

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00:13:41,200 --> 00:13:44,700
work, to what are the
details behind the bank

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00:13:44,700 --> 00:13:48,200
recapitalization, to how
well the Greek issue will

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00:13:48,200 --> 00:13:50,530
be resolved.

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Mr. Rhodes:
And I'd just add to that -- what
we want to see here, again, is,

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00:13:57,667 --> 00:14:02,897
as Mike said, the details as it
relates to the implementation of

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00:14:02,900 --> 00:14:06,270
the European agreement,
understanding that this is

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00:14:06,266 --> 00:14:09,236
important to the
American economy as well;

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00:14:09,233 --> 00:14:13,063
that what we've learned over the
course of the last several years

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00:14:13,066 --> 00:14:16,236
is just how much we have a
stake in one another's success.

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00:14:16,233 --> 00:14:20,233
And so, therefore, that's why
the President has been in such

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00:14:20,233 --> 00:14:24,063
close contact with close
friends and allies alike --

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00:14:24,066 --> 00:14:25,896
Chancellor Merkel and
President Sarkozy --

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00:14:25,900 --> 00:14:27,100
as they've been
developing their plan,

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00:14:27,100 --> 00:14:28,800
as they announced
their plan last week,

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00:14:28,800 --> 00:14:32,130
and now as they work towards
fleshing out exactly how they're

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00:14:32,133 --> 00:14:35,933
going to implement it -- because
we believe that forums like this

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00:14:35,934 --> 00:14:39,804
are necessary, because even as
the Europeans are dealing with a

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00:14:39,800 --> 00:14:42,400
very specific crisis
in the eurozone,

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00:14:42,400 --> 00:14:47,700
we know that the global economy
is one entity and that all of us

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00:14:47,700 --> 00:14:50,270
as members of the G20 have
a stake in one another.

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00:14:50,266 --> 00:14:53,966
So that's the perspective that
we bring to bear on this,

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00:14:53,967 --> 00:14:55,997
and we also bring,
as Mike pointed out,

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00:14:56,000 --> 00:14:59,230
the experience of having
dealt with a very significant

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00:14:59,233 --> 00:15:04,133
financial crisis of
our own in 2008-2009.

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00:15:04,133 --> 00:15:07,133
The Press:
You sort of addressed this, but
how important is what happens

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00:15:07,133 --> 00:15:09,563
here over the next two
days to the U.S. economy?

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00:15:09,567 --> 00:15:13,137
And last month the President
said that the uncertainty in

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00:15:13,133 --> 00:15:15,633
Europe was the biggest headwind
facing the U.S. economy.

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00:15:15,633 --> 00:15:17,703
Do you guys still
believe that that's true?

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00:15:17,700 --> 00:15:21,230
And what leverage does the U.S.
have in the talks over the next

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00:15:21,233 --> 00:15:24,833
couple days?

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00:15:24,834 --> 00:15:27,634
Mr. Froman:
As Ben said, I think it's quite
important what happens at the

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00:15:27,633 --> 00:15:32,833
G20 for the U.S. economy because
we are so interconnected.

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00:15:32,834 --> 00:15:36,864
Europe itself -- which is one
of our largest trading partners,

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00:15:36,867 --> 00:15:39,167
or our largest trading
partner as a whole --

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00:15:39,166 --> 00:15:42,296
Europe's success is key
to our success here.

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00:15:42,300 --> 00:15:45,870
So we want very much for them
to be successful as they work

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00:15:45,867 --> 00:15:46,867
through these issues.

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00:15:46,867 --> 00:15:49,337
But I'd put it in the
broader context as well.

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00:15:49,333 --> 00:15:52,403
As you recall, there is the
rebalancing agenda about how to

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00:15:52,400 --> 00:15:55,600
ensure that there is a recovery
and that the recovery is

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00:15:55,600 --> 00:15:59,670
balanced, and the countries are
taking actions to ensure that we

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00:15:59,667 --> 00:16:01,867
avoid crises in the future.

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00:16:01,867 --> 00:16:04,537
And that's going to be very much
part of the discussion in terms

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00:16:04,533 --> 00:16:07,463
of what countries can do to
achieve balanced growth.

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00:16:07,467 --> 00:16:12,767
And that goes to countries that
have surpluses and are moving

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00:16:12,767 --> 00:16:18,397
towards more domestic demand;
countries that are committing to

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00:16:18,400 --> 00:16:21,530
or determined to further
liberalization of their exchange

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00:16:21,533 --> 00:16:27,363
rate; countries that are taking
action to spur growth and jobs

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00:16:27,367 --> 00:16:31,267
in the short run, even as they
pursue fiscal consolidation in

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00:16:31,266 --> 00:16:32,496
the medium term.

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00:16:32,500 --> 00:16:35,200
And those are all -- those
all affect us in the United

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00:16:35,200 --> 00:16:36,200
States as well.

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00:16:36,200 --> 00:16:37,800
There will be a discussion
of trade issues,

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00:16:37,800 --> 00:16:40,630
which very much affect us and
our ability to export from the

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00:16:40,633 --> 00:16:44,563
U.S. and grow jobs
in the U.S. as well.

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00:16:44,567 --> 00:16:46,997
Mr. Rhodes:
I'd just add one
thing, Carol, that --

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00:16:47,000 --> 00:16:51,100
you used the word
"leverage," for instance.

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00:16:51,100 --> 00:16:54,630
There is no country or group of
countries that has a greater

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00:16:54,633 --> 00:16:57,063
interest in resolving
the eurozone crisis than

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00:16:57,066 --> 00:16:58,466
the Europeans.

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00:16:58,467 --> 00:17:02,467
Insofar as they feel a sense of
urgency and a sense of pressure

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00:17:02,467 --> 00:17:05,997
to act, it's because they need
to put their economies on a

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00:17:06,000 --> 00:17:07,900
firmer footing -- and
they understand that.

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00:17:07,900 --> 00:17:10,930
And that's why they've announced
the very significant steps that

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00:17:10,934 --> 00:17:14,934
they announced last week, and
that's why they're working here

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00:17:14,934 --> 00:17:18,604
to flesh out the
implementation of those plans.

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00:17:18,600 --> 00:17:23,500
What the U.S. has is a
significant amount of experience

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00:17:23,500 --> 00:17:26,770
in dealing with a financial
crisis where we took very

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00:17:26,767 --> 00:17:31,537
aggressive and robust action to
rescue our financial sector and

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00:17:31,533 --> 00:17:35,003
to help rescue the global
economy back in 2008 and 2009.

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00:17:35,000 --> 00:17:37,100
And we've been sharing that
experience over the course of

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00:17:37,100 --> 00:17:38,730
many weeks and months.

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00:17:38,734 --> 00:17:40,904
As the world's largest
economy, of course,

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00:17:40,900 --> 00:17:45,670
the U.S. remains an influential
and important voice in all the

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00:17:45,667 --> 00:17:47,537
discussions at the G20.

318
00:17:47,533 --> 00:17:52,733
But also, we were a leading
actor in making the G20 the

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00:17:52,734 --> 00:17:55,134
forum to deal with precisely
these kinds of issues,

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00:17:55,133 --> 00:17:58,003
because we wanted to see a
full range of countries around

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00:17:58,000 --> 00:17:58,630
the table.

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00:17:58,633 --> 00:18:03,803
We want to see our traditional
allies in the developed world at

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00:18:03,800 --> 00:18:06,800
the table, but we also want to
see emerging economies as well,

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00:18:06,800 --> 00:18:09,730
because they have a role to play
in terms of making sure that the

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00:18:09,734 --> 00:18:10,864
global economy is
moving forward.

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00:18:10,867 --> 00:18:14,837
So, again, I think the sense of
urgency comes from the situation

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00:18:14,834 --> 00:18:18,434
itself, and the fact that
everybody has a stake here in

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00:18:18,433 --> 00:18:22,703
the success of a plan that can
deal with the eurozone crisis,

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00:18:22,700 --> 00:18:26,130
that can stabilize the eurozone,
and that can continue the global

330
00:18:26,133 --> 00:18:27,463
economic recovery.

331
00:18:27,467 --> 00:18:29,337
And different nations are going
to play different roles in

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00:18:29,333 --> 00:18:30,663
supporting that effort.

333
00:18:30,667 --> 00:18:33,667
And the U.S., again, as a
key partner and ally to the

334
00:18:33,667 --> 00:18:36,897
Europeans, plays the
role of offering ideas,

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00:18:36,900 --> 00:18:41,470
drawing from our own experience,
and also being a full

336
00:18:41,467 --> 00:18:45,737
participant in groups like the
G20 and the IMF that have a

337
00:18:45,734 --> 00:18:48,004
critical role to
play here as well.

338
00:18:48,000 --> 00:18:51,830
The Press:
Can you address really quickly
the specific question on what

339
00:18:51,834 --> 00:18:54,834
the President said last
month about the headwinds --

340
00:18:54,834 --> 00:18:58,034
the crisis in Europe being the
biggest headwind facing the

341
00:18:58,033 --> 00:18:59,163
U.S. economy?

342
00:18:59,166 --> 00:19:00,996
Do you still believe
that's the case?

343
00:19:01,000 --> 00:19:05,200
Mr. Rhodes:
Well, what I would say is, right
now the fact that the global --

344
00:19:05,200 --> 00:19:08,630
that the G20 is
focused very much --

345
00:19:08,633 --> 00:19:11,733
as Mike said, there is an
ongoing agenda that involves how

346
00:19:11,734 --> 00:19:14,404
do we work towards
sustainable growth;

347
00:19:14,400 --> 00:19:18,300
how do we foster
free and fair trade;

348
00:19:18,300 --> 00:19:21,800
how do we foster economic
development that benefits the

349
00:19:21,800 --> 00:19:25,200
international community and
of course our own markets

350
00:19:25,200 --> 00:19:26,400
and countries.

351
00:19:26,400 --> 00:19:31,400
But also, the G20 is a place to
deal with the preeminent global

352
00:19:31,400 --> 00:19:33,230
challenges and
crises of the day.

353
00:19:33,233 --> 00:19:37,203
And right now, the eurozone
situation is front and center.

354
00:19:37,200 --> 00:19:41,830
And so certainly, that's why
it's a focus here in Cannes and

355
00:19:41,834 --> 00:19:43,634
has been a focus of the
President's in his interactions

356
00:19:43,633 --> 00:19:44,903
with his counterparts.

357
00:19:44,900 --> 00:19:47,930
So it's certainly the preeminent
issue as it relates to the

358
00:19:47,934 --> 00:19:51,204
global economy in terms of a
challenge that we need to be

359
00:19:51,200 --> 00:19:54,730
dealing with right
now here in Cannes.

360
00:19:54,734 --> 00:19:57,104
The Press:
Ben, could I ask you a question
about the President's statement

361
00:19:57,100 --> 00:20:01,100
on Iran that he made at the
beginning of the bilat --

362
00:20:01,100 --> 00:20:05,170
or the statements at the bilat
with the French President?

363
00:20:05,166 --> 00:20:09,396
What is the signal to
Tehran from that statement?

364
00:20:09,400 --> 00:20:14,070
And how does it relate to the
buzz that's out there about talk

365
00:20:14,066 --> 00:20:17,266
about possible military action?

366
00:20:17,266 --> 00:20:21,766
Mr. Rhodes:
Well, I mean, I'd separate it
from any type of speculation or

367
00:20:21,767 --> 00:20:27,937
hypothetical situation as it
relates to military action.

368
00:20:27,934 --> 00:20:31,064
I think what the President was
underscoring is there's been an

369
00:20:31,066 --> 00:20:33,066
ongoing concern in the
international community about

370
00:20:33,066 --> 00:20:34,936
Iran's nuclear program.

371
00:20:34,934 --> 00:20:37,904
Iran, over many years, has
been unable to demonstrate the

372
00:20:37,900 --> 00:20:40,600
peaceful intent of
its nuclear program.

373
00:20:40,600 --> 00:20:42,530
It's precisely for that reason
that the United States and

374
00:20:42,533 --> 00:20:47,103
France have really taken the
lead in applying very aggressive

375
00:20:47,100 --> 00:20:49,670
pressure on the Iranian
government -- by passing a U.N.

376
00:20:49,667 --> 00:20:51,837
Security Council resolution
that put in place the toughest

377
00:20:51,834 --> 00:20:55,134
sanctions regime to date, by
working to build out on those

378
00:20:55,133 --> 00:20:59,203
sanction through our own
individual actions as nations,

379
00:20:59,200 --> 00:21:03,330
and again, by isolating Iran
economically and diplomatically

380
00:21:03,333 --> 00:21:04,533
in the world.

381
00:21:04,533 --> 00:21:07,203
That said, what we expect and
what the President was referring

382
00:21:07,200 --> 00:21:11,430
to is another report on the
Iranian nuclear program from the

383
00:21:11,433 --> 00:21:16,203
IAEA next week,
which will, again,

384
00:21:16,200 --> 00:21:19,630
speak once more to whether
or not Iran is meeting its

385
00:21:19,633 --> 00:21:21,633
international obligations.

386
00:21:21,633 --> 00:21:25,603
And that will be another
important point for the

387
00:21:25,600 --> 00:21:32,670
international community to
assess whether or not Iran is

388
00:21:32,667 --> 00:21:33,737
meeting those obligations.

389
00:21:33,734 --> 00:21:35,904
We, of course, don't
believe that they are,

390
00:21:35,900 --> 00:21:38,900
so we'll have to be continuing
to build out the pressure on the

391
00:21:38,900 --> 00:21:41,270
Iranian government going
forward from there.

392
00:21:41,266 --> 00:21:43,836
The Press:
Iran is already thumbing its
nose at the requirement next

393
00:21:43,834 --> 00:21:46,234
week, so how do you think
it's going to play out?

394
00:21:46,233 --> 00:21:51,333
Mr. Rhodes:
Well, I wouldn't put a lot of
credibility into the Iranian

395
00:21:51,333 --> 00:21:54,203
government's statements on these
matters because they have not

396
00:21:54,200 --> 00:21:56,970
been able to prove with their
actions the peaceful intent of

397
00:21:56,967 --> 00:21:58,497
their nuclear program.

398
00:21:58,500 --> 00:22:02,100
So how this has played out in
the past is Iran has not been

399
00:22:02,100 --> 00:22:06,370
able to build the confidence not
just of the United States but of

400
00:22:06,367 --> 00:22:10,137
IAEA and of the international
community that their program

401
00:22:10,133 --> 00:22:10,633
is peaceful.

402
00:22:10,633 --> 00:22:15,763
They're the only treaty member
of the NPT that cannot convince

403
00:22:15,767 --> 00:22:18,697
the International Atomic Energy
Agency that their program

404
00:22:18,700 --> 00:22:20,430
is peaceful.

405
00:22:20,433 --> 00:22:22,903
And that's precisely why they're
facing the type of international

406
00:22:22,900 --> 00:22:24,300
pressure that they're facing.

407
00:22:24,300 --> 00:22:27,330
That's why the sanctions that
they're under for the first time

408
00:22:27,333 --> 00:22:30,133
have slowed the Iranian
economy to a halt, again,

409
00:22:30,133 --> 00:22:31,703
for the first time in decades.

410
00:22:31,700 --> 00:22:33,970
And that's why we're going
to have to continue to be

411
00:22:33,967 --> 00:22:36,437
ratcheting up that pressure on
the Iranian government as long

412
00:22:36,433 --> 00:22:44,733
as they can't meet
those obligations.

413
00:22:44,734 --> 00:22:46,634
The Press:
How fragile is Europe's
banking system?

414
00:22:46,633 --> 00:22:51,363
And are you concerned that,
depending on how Europe asks its

415
00:22:51,367 --> 00:22:53,267
banks to raise this
$106 billion in capital,

416
00:22:53,266 --> 00:22:57,096
it could make it harder for
some countries to borrow,

417
00:22:57,100 --> 00:22:59,330
make it harder for people to
get credit, hurt the economy,

418
00:22:59,333 --> 00:23:01,333
hurt the world economy?

419
00:23:01,333 --> 00:23:05,503
Mr. Froman:
Well, I think the decisions that
the eurozone leaders took last

420
00:23:05,500 --> 00:23:10,400
week on creating a strong
firewall, dealing with Greece,

421
00:23:10,400 --> 00:23:13,130
and very importantly, dealing
with bank recapitalization,

422
00:23:13,133 --> 00:23:18,463
demonstrated their commitment to
ensure that their banking system

423
00:23:18,467 --> 00:23:23,637
has what it takes to withstand
any developments throughout

424
00:23:23,633 --> 00:23:24,863
this process.

425
00:23:24,867 --> 00:23:29,137
So they're in the process now
of implementing that plan,

426
00:23:29,133 --> 00:23:34,833
and it will be important, as
part of this overall firewall,

427
00:23:34,834 --> 00:23:37,004
that that recapitalization
be done and be done in a

428
00:23:37,000 --> 00:23:37,900
robust way.

429
00:23:37,900 --> 00:23:40,600
But I think they're right now
in the process of implementing

430
00:23:40,600 --> 00:23:46,500
that, and we're monitoring
that as it goes into place.

431
00:23:46,500 --> 00:23:49,400
The Press:
And related to
that, specifically,

432
00:23:49,400 --> 00:23:53,300
how vulnerable do you think the
U.S. banking system now is to

433
00:23:53,300 --> 00:23:57,500
the destruction in Europe
-- not just direct exposure,

434
00:23:57,500 --> 00:24:01,800
but indirect exposure -- and are
we going to be taking any steps

435
00:24:01,800 --> 00:24:04,270
that kind of make
us less vulnerable?

436
00:24:04,266 --> 00:24:08,196
Mr. Froman:
Well, I think Chairman Bernanke
may have spoken on this

437
00:24:08,200 --> 00:24:10,670
yesterday or earlier this week.

438
00:24:10,667 --> 00:24:15,097
We think our direct exposure is
modest and we think that we have

439
00:24:15,100 --> 00:24:19,470
the tools to take measures
if necessary if there's any

440
00:24:19,467 --> 00:24:22,197
indirect exposure.

441
00:24:22,200 --> 00:24:27,600
The Press:
You mentioned the need for
Europeans' overwhelming force,

442
00:24:27,600 --> 00:24:32,130
and you all have both said
the U.S. has good examples in

443
00:24:32,133 --> 00:24:35,133
dealing with its own
crisis in 2008-2009.

444
00:24:35,133 --> 00:24:38,703
Does that point to a
Fed-like role for the ECB?

445
00:24:38,700 --> 00:24:46,200
And if not, in what ways can
Europe use overwhelming force

446
00:24:46,200 --> 00:24:48,100
other than they've
already discussed in their

447
00:24:48,100 --> 00:24:50,430
October 26 agreement?

448
00:24:50,433 --> 00:24:54,133
Mr. Froman:
Well, in the case of the
financial crisis in the U.S.,

449
00:24:54,133 --> 00:24:57,803
there was obviously close
cooperation between our Treasury

450
00:24:57,800 --> 00:24:59,530
Department, our
financial authorities,

451
00:24:59,533 --> 00:25:02,333
and our central bank -- the Fed.

452
00:25:02,333 --> 00:25:04,933
And that proved to be very
effective in our case.

453
00:25:04,934 --> 00:25:07,604
The Europeans will have to make
their own decisions about how

454
00:25:07,600 --> 00:25:11,730
best to erect an
effective firewall.

455
00:25:11,734 --> 00:25:17,004
And I think they have focused on
the EFSF and are now working to

456
00:25:17,000 --> 00:25:20,530
elaborate that plan and
discuss its relationship with

457
00:25:20,533 --> 00:25:22,533
other institutions.

458
00:25:22,533 --> 00:25:26,603
I think there have also been
comments out of the European

459
00:25:26,600 --> 00:25:31,400
Central Bank, including by
the incoming chair Draghi --

460
00:25:31,400 --> 00:25:35,630
Mario Draghi -- about its intent
to continue to potentially play

461
00:25:35,633 --> 00:25:38,333
a role in the
markets as necessary.

462
00:25:38,333 --> 00:25:41,263
So that's for the
Europeans to decide.

463
00:25:41,266 --> 00:25:44,336
We have experience from our
model and they are working

464
00:25:44,333 --> 00:25:47,503
through those issues themselves.

465
00:25:47,500 --> 00:25:51,270
The Press:
In terms of some more specifics
of the interaction between the

466
00:25:51,266 --> 00:25:54,366
President and world
leaders in these bilats,

467
00:25:54,367 --> 00:25:57,137
what do they say about
their conversation with

468
00:25:57,133 --> 00:26:00,803
Mr. Papandreou, and can you give
us a sense as to what their view

469
00:26:00,800 --> 00:26:04,800
is of things going forward
in the immediate future?

470
00:26:04,800 --> 00:26:07,000
Mr. Rhodes:
I'll just make a couple comments
and then turn it to Mike.

471
00:26:07,000 --> 00:26:12,270
I think as it relates to their
conversations yesterday with

472
00:26:12,266 --> 00:26:16,566
Prime Minister Papandreou, I
think they track very closely

473
00:26:16,567 --> 00:26:22,767
the comments that they made
publicly yesterday about how

474
00:26:22,767 --> 00:26:25,897
they reacted to the
announcement of the referendum,

475
00:26:25,900 --> 00:26:27,800
about how that was going to
affect the implementation of

476
00:26:27,800 --> 00:26:30,170
the Greek plan.

477
00:26:30,166 --> 00:26:34,966
But again, I think what they
really focused on was this

478
00:26:34,967 --> 00:26:37,897
underscores the need to
implement the full comprehensive

479
00:26:37,900 --> 00:26:42,500
plan; that, yes, Greece is
going to have to be dealt with,

480
00:26:42,500 --> 00:26:45,570
but even as that
is moving forward,

481
00:26:45,567 --> 00:26:47,767
they're moving forward
on recapitalization,

482
00:26:47,767 --> 00:26:50,667
they're moving forward on
building a sufficient firewall,

483
00:26:50,667 --> 00:26:53,197
they're moving forward on the
full program they agreed to on

484
00:26:53,200 --> 00:26:53,800
October 27th.

485
00:26:53,800 --> 00:26:58,530
So, again, Greece is one part of
a broader strategy that is being

486
00:26:58,533 --> 00:27:02,663
implemented and that what
they're working through here at

487
00:27:02,667 --> 00:27:06,597
Cannes is both how do they
identify the way forward in the

488
00:27:06,600 --> 00:27:08,500
implementation of that plan, and
then how does the international

489
00:27:08,500 --> 00:27:13,730
community, as represented in
the G20, support their efforts.

490
00:27:13,734 --> 00:27:16,434
So that very much drove
their conversations.

491
00:27:16,433 --> 00:27:20,233
And I also think just in
terms of their interactions,

492
00:27:20,233 --> 00:27:24,463
as we said a couple
times, the President --

493
00:27:24,467 --> 00:27:28,067
there are probably no two
leaders I think that he's spoken

494
00:27:28,066 --> 00:27:34,796
with more in the last three
years than Chancellor Merkel and

495
00:27:34,800 --> 00:27:36,170
President Sarkozy.

496
00:27:36,166 --> 00:27:39,136
At the very least, they're
near the top of that list.

497
00:27:39,133 --> 00:27:42,263
He's been through a
lot with these leaders.

498
00:27:42,266 --> 00:27:44,266
They've been through
the London G20,

499
00:27:44,266 --> 00:27:46,566
when we were dealing with
an urgent financial crisis.

500
00:27:46,567 --> 00:27:50,137
They've been through our shared
efforts on security challenges,

501
00:27:50,133 --> 00:27:53,103
like Iran, Afghanistan, Libya.

502
00:27:53,100 --> 00:27:57,370
And for the last several months
they've been through the efforts

503
00:27:57,367 --> 00:27:59,397
that Europeans have
undertaken to deal with this

504
00:27:59,400 --> 00:28:00,770
eurozone crisis.

505
00:28:00,767 --> 00:28:03,397
So when he speaks with them he
very much picks up essentially

506
00:28:03,400 --> 00:28:04,830
an ongoing conversation.

507
00:28:04,834 --> 00:28:08,534
They have been speaking
independently as leaders on

508
00:28:08,533 --> 00:28:10,863
basically a weekly basis.

509
00:28:10,867 --> 00:28:14,797
They met by videoconference
as a quad with David Cameron as

510
00:28:14,800 --> 00:28:16,170
well recently.

511
00:28:16,166 --> 00:28:19,636
And so when they begin
discussions on these matters,

512
00:28:19,633 --> 00:28:22,363
they pick up where they left
off and they have a deep

513
00:28:22,367 --> 00:28:25,837
understanding of one
another's thinking,

514
00:28:25,834 --> 00:28:29,564
of one another's interests as
it relates to dealing with this

515
00:28:29,567 --> 00:28:32,067
challenge, and one
another's ideas.

516
00:28:32,066 --> 00:28:36,096
So it's a very free-flowing
discussion that builds upon,

517
00:28:36,100 --> 00:28:38,530
I think, the type of
relationship that they have with

518
00:28:38,533 --> 00:28:40,033
one another and the type of
conversations they've been

519
00:28:40,033 --> 00:28:41,603
having for many months.

520
00:28:41,600 --> 00:28:44,370
So, again, it lifts it out of
just whatever the news of the

521
00:28:44,367 --> 00:28:47,297
day is and into that
broader picture.

522
00:28:47,300 --> 00:28:48,870
But, Mike, I don't know
if you have anything?

523
00:28:48,867 --> 00:28:49,367
Okay.

524
00:28:49,367 --> 00:28:51,467
The Press:
Is the President, coming
out of these interactions,

525
00:28:51,467 --> 00:28:54,597
confident that they are moving
expeditiously enough to deal

526
00:28:54,600 --> 00:28:57,270
with whatever fallout
could occur from Greece?

527
00:28:57,266 --> 00:28:59,796
Does he feel that
the second, third,

528
00:28:59,800 --> 00:29:03,600
fourth tracks that are going
ahead in terms of their planning

529
00:29:03,600 --> 00:29:07,500
is at the moment occurring
with the appropriate speed?

530
00:29:07,500 --> 00:29:10,100
Mr. Rhodes:
Well, again, first of all, I
think he has great confidence in

531
00:29:10,100 --> 00:29:17,000
their leadership and he has
expressed support for the

532
00:29:17,000 --> 00:29:21,270
agreement that they
sketched out last week.

533
00:29:21,266 --> 00:29:22,936
But again, I think he's also
made clear that that doesn't

534
00:29:22,934 --> 00:29:28,204
complete our efforts to deal
with this challenge and that

535
00:29:28,200 --> 00:29:30,570
while there have been
substantial progress,

536
00:29:30,567 --> 00:29:34,297
both he and I think Europe's
leaders would acknowledge that

537
00:29:34,300 --> 00:29:36,670
more work needs to be done
because this needs to be

538
00:29:36,667 --> 00:29:42,697
implemented in a decisive way
and a clear way in order to move

539
00:29:42,700 --> 00:29:45,470
beyond the current
situation of crisis.

540
00:29:45,467 --> 00:29:47,937
So, again, I think he has
confidence in the steps that

541
00:29:47,934 --> 00:29:50,664
have been taken but also
believes that more work needs to

542
00:29:50,667 --> 00:29:52,867
be done, and I think, frankly,
that tracks very much with the

543
00:29:52,867 --> 00:29:55,437
views of both President
Sarkozy and Chancellor Merkel.

544
00:29:55,433 --> 00:29:58,603
The Press:
What is the level of confidence
that they will do this in the

545
00:29:58,600 --> 00:30:00,500
coming days?

546
00:30:00,500 --> 00:30:02,500
Mr. Froman:
Well, I would just
add to what Ben said,

547
00:30:02,500 --> 00:30:07,530
I think he's also confident that
they are seized with the urgency

548
00:30:07,533 --> 00:30:08,303
of moving forward.

549
00:30:08,300 --> 00:30:10,530
They are working
around the clock --

550
00:30:10,533 --> 00:30:13,063
they, themselves,
and their teams --

551
00:30:13,066 --> 00:30:14,796
to try and work
through these issues.

552
00:30:14,800 --> 00:30:19,200
And that holds the best prospect
that they'll be successful in

553
00:30:19,200 --> 00:30:21,430
achieving those objectives.

554
00:30:21,433 --> 00:30:25,163
The Press:
You mentioned firewall and
you mentioned the banking,

555
00:30:25,166 --> 00:30:27,136
but no mention of growth.

556
00:30:27,133 --> 00:30:29,333
Europe has not
prepared a growth plan,

557
00:30:29,333 --> 00:30:31,503
which seems to be
very important.

558
00:30:31,500 --> 00:30:34,130
What is the U.S.
feeling about that?

559
00:30:34,133 --> 00:30:37,603
Mr. Froman:
Well, obviously we think
growth and jobs are

560
00:30:37,600 --> 00:30:38,430
critically important.

561
00:30:38,433 --> 00:30:41,803
That's why the President put out
the American Jobs Act and his

562
00:30:41,800 --> 00:30:46,770
proposal to spur jobs and growth
in the short run and to achieve

563
00:30:46,767 --> 00:30:49,167
fiscal consolidation
over the medium term.

564
00:30:49,166 --> 00:30:52,836
And I think you'll find in the
context of the G20, in fact,

565
00:30:52,834 --> 00:30:55,004
that there's been a good
discussion of growth,

566
00:30:55,000 --> 00:30:57,370
the importance of growth, the
importance of job creation,

567
00:30:57,367 --> 00:31:01,097
and including specific actions
by specific countries of what

568
00:31:01,100 --> 00:31:03,430
they could do to try and
achieve those objectives.

569
00:31:03,433 --> 00:31:06,063
So that is very much a
part of the G20 agenda,

570
00:31:06,066 --> 00:31:12,866
as the President has been
talking about for some time.

571
00:31:12,867 --> 00:31:15,637
The Press:
Could you elaborate a little
bit more about the question --

572
00:31:15,633 --> 00:31:18,103
because a lot of the distress
that you're seeing in Greece is

573
00:31:18,100 --> 00:31:21,430
because so much of this plan
does not account for growth.

574
00:31:21,433 --> 00:31:25,333
There's the belief that it puts
a lot of onus on the regular

575
00:31:25,333 --> 00:31:27,603
Greek citizens as
opposed to the banks.

576
00:31:27,600 --> 00:31:31,730
When you say to the Europeans,
look at how we did it,

577
00:31:31,734 --> 00:31:34,104
and you guys have the
capacity to do this yourself,

578
00:31:34,100 --> 00:31:38,130
what specific steps that address
growth are you recommending?

579
00:31:38,133 --> 00:31:41,003
Mr. Froman:
Well, there are countries that
are in different situations.

580
00:31:41,000 --> 00:31:44,970
In some cases, countries need
deep fiscal consolidation right

581
00:31:44,967 --> 00:31:48,567
now in order to achieve
stability in the markets.

582
00:31:48,567 --> 00:31:54,797
In other cases, countries
have room to spur growth.

583
00:31:54,800 --> 00:31:58,230
They can engage in structural
reforms to spur growth.

584
00:31:58,233 --> 00:32:01,903
They can allow their automatic
stabilizers to kick in if they

585
00:32:01,900 --> 00:32:07,630
are not achieving
their deficit targets.

586
00:32:07,633 --> 00:32:10,403
There are a number of things
that countries can do to ensure

587
00:32:10,400 --> 00:32:12,100
that they are able to grow.

588
00:32:12,100 --> 00:32:17,530
And very importantly, in the
emerging economies where you may

589
00:32:17,533 --> 00:32:19,903
have surplus countries that
can shift to greater domestic

590
00:32:19,900 --> 00:32:22,330
demand, that's a critical role
for them to play as part of this

591
00:32:22,333 --> 00:32:23,263
effort as well.

592
00:32:23,266 --> 00:32:26,236
And that goes back to the
rebalancing agenda as well.

593
00:32:26,233 --> 00:32:28,733
So there are things that
different countries in different

594
00:32:28,734 --> 00:32:30,234
situations can do.

595
00:32:30,233 --> 00:32:32,833
And part of the discussion that
the G20 will be having this

596
00:32:32,834 --> 00:32:35,504
afternoon, and that I think
you'll see reflects it in the

597
00:32:35,500 --> 00:32:38,200
final result, is a
growth and jobs strategy,

598
00:32:38,200 --> 00:32:40,730
which includes specific
actions by specific countries.

599
00:32:40,734 --> 00:32:41,704
Mr. Carney:
One more.

600
00:32:41,700 --> 00:32:43,100
The Press:
Answer this question as
it relates to Greece,

601
00:32:43,100 --> 00:32:45,130
since that's the country
that's in crisis right now,

602
00:32:45,133 --> 00:32:47,033
and if they go, are you worried
about the contagion effect?

603
00:32:47,033 --> 00:32:50,733
Mr. Froman:
I think right now the highest
priority in Greece is

604
00:32:50,734 --> 00:32:52,804
stabilizing the situation.

605
00:32:52,800 --> 00:32:56,630
But the program that Greece has
is also about reforming its

606
00:32:56,633 --> 00:32:59,403
system and engaging in
structural reforms so that it

607
00:32:59,400 --> 00:33:02,930
could become more competitive
and therefore grow as part of

608
00:33:02,934 --> 00:33:04,004
the euro area.

609
00:33:04,000 --> 00:33:05,170
Mr. Rhodes:
I just want to make
one very quick point,

610
00:33:05,166 --> 00:33:07,396
which is that you've seen at
these other G20s often this

611
00:33:07,400 --> 00:33:11,030
discussion of growth and
fiscal consolidation.

612
00:33:11,033 --> 00:33:14,003
I think what's represented
at this G20 is a broad

613
00:33:14,000 --> 00:33:16,030
understanding that
you need both;

614
00:33:16,033 --> 00:33:18,503
that there are going to have to
be steps to promote growth and

615
00:33:18,500 --> 00:33:20,070
job creation in
the global economy,

616
00:33:20,066 --> 00:33:21,796
and there's going
to have be, again,

617
00:33:21,800 --> 00:33:23,770
that kind of deficit reduction
over the medium and long term

618
00:33:23,767 --> 00:33:25,697
that many of the
leaders have worked on.

619
00:33:25,700 --> 00:33:27,630
And similarly, in
the United States,

620
00:33:27,633 --> 00:33:29,963
President Obama is pursuing
an approach where we have an

621
00:33:29,967 --> 00:33:32,667
immediate growth package
represented in the jobs act,

622
00:33:32,667 --> 00:33:35,267
and the other steps that we're
taking to promote growth and job

623
00:33:35,266 --> 00:33:36,366
creation at home.

624
00:33:36,367 --> 00:33:39,867
And we have a plan for
significant deficit reduction in

625
00:33:39,867 --> 00:33:42,397
the medium and
long term as well.

626
00:33:42,400 --> 00:33:44,330
Mr. Carney:
Let's take one more for Mike.

627
00:33:44,333 --> 00:33:44,803
Christi.

628
00:33:44,800 --> 00:33:47,930
The Press:
Just quickly, do you know yet
if the Chinese are planning to

629
00:33:47,934 --> 00:33:49,634
contribute money to the bailout?

630
00:33:49,633 --> 00:33:53,063
And can you say anything about
the U.S. intent on that point?

631
00:33:53,066 --> 00:33:53,396
Mr. Froman:
I'm sorry?

632
00:33:53,400 --> 00:33:56,930
The Press:
And can you talk about the
U.S. intent on that point?

633
00:33:56,934 --> 00:34:00,834
Mr. Froman:
Well, I think the discussion is
likely to be how the G20 as a

634
00:34:00,834 --> 00:34:04,604
whole, how the international
community can be supportive of

635
00:34:04,600 --> 00:34:09,200
the European countries as
they deal with their crisis.

636
00:34:09,200 --> 00:34:12,030
And there are many different
ways to be supportive.

637
00:34:12,033 --> 00:34:14,603
As we've talked about, one of
the ways in which we're being

638
00:34:14,600 --> 00:34:17,100
supportive is by sharing our
experience and sharing ideas.

639
00:34:17,100 --> 00:34:21,570
And I would simply say that
virtually across all of the

640
00:34:21,567 --> 00:34:26,597
issues on the G20 agenda,
countries look to the U.S. for

641
00:34:26,600 --> 00:34:30,570
ideas, for advice on issues
that they're working through.

642
00:34:30,567 --> 00:34:32,697
And that's one of the
many things that we can

643
00:34:32,700 --> 00:34:33,400
contribute there.

644
00:34:33,400 --> 00:34:41,530
We've seen no announcement about
China's intent to contribute to

645
00:34:41,533 --> 00:34:44,503
the euro crisis, and you'll
have to ask them for

646
00:34:44,500 --> 00:34:45,500
specific things there.

647
00:34:45,500 --> 00:34:49,700
But I think, very importantly,
it's our belief that our ability

648
00:34:49,700 --> 00:34:51,430
to contribute, our
ability to lead,

649
00:34:51,433 --> 00:34:56,503
and our ability to influence the
outcome of these sorts of issues

650
00:34:56,500 --> 00:35:01,000
is not tied necessarily to
having the American taxpayer pay

651
00:35:01,000 --> 00:35:02,470
for every problem.

652
00:35:02,467 --> 00:35:04,137
The Press:
Do you agree with the
special vehicle --

653
00:35:04,133 --> 00:35:10,363
this idea of a special vehicle
for the contribution of China?

654
00:35:10,367 --> 00:35:12,337
The special vehicle --

655
00:35:12,333 --> 00:35:15,763
Mr. Froman:
Oh, the special -- there are
many ideas out there in terms of

656
00:35:15,767 --> 00:35:18,467
how resources
might be mobilized.

657
00:35:18,467 --> 00:35:21,237
That's one idea
that is out there.

658
00:35:21,233 --> 00:35:23,063
And these are the sorts of
things that technical experts

659
00:35:23,066 --> 00:35:24,036
are currently working.

660
00:35:24,033 --> 00:35:24,263
The Press:
What are those --

661
00:35:24,266 --> 00:35:26,596
Mr. Froman:
Well, there are many ideas that
people are working through,

662
00:35:26,600 --> 00:35:29,130
and each of them
has pros and cons.

663
00:35:29,133 --> 00:35:33,433
The Press:
BBC and Reuters are reporting
that Papandreou is resigning

664
00:35:33,433 --> 00:35:34,333
within the half hour.

665
00:35:34,333 --> 00:35:36,463
We have it that he's going to
the President's office now,

666
00:35:36,467 --> 00:35:39,797
and the opposition is agreeing
to form a coalition government.

667
00:35:39,800 --> 00:35:42,070
Can you comment on the
implications of all this?

668
00:35:42,066 --> 00:35:45,766
Mr. Rhodes:
Well, again, we'll have to
let the Greek government make

669
00:35:45,767 --> 00:35:47,197
announcements
about their future.

670
00:35:47,200 --> 00:35:51,030
The implications remain the same
as it relates to the need to

671
00:35:51,033 --> 00:35:53,733
take action on a
range of fronts.

672
00:35:53,734 --> 00:35:58,464
So, again, the plan that the
Europeans agreed to last week

673
00:35:58,467 --> 00:36:01,797
involves action to deal
with the Greek situation,

674
00:36:01,800 --> 00:36:04,500
but it involves a range of other
steps, too, on recapitalization,

675
00:36:04,500 --> 00:36:06,900
on building a firewall -- all
of which are going to need to be

676
00:36:06,900 --> 00:36:10,600
done irrespective of individual
political circumstances in

677
00:36:10,600 --> 00:36:11,300
different countries.

678
00:36:11,300 --> 00:36:13,830
So I think we know
what the roadmap is.

679
00:36:13,834 --> 00:36:15,234
We know that there needs
to be implementation,

680
00:36:15,233 --> 00:36:17,803
and this reinforces that.

681
00:36:17,800 --> 00:36:20,370
The Press:
This doesn't threaten
the deal in any way?

682
00:36:20,367 --> 00:36:23,297
Mr. Rhodes:
We'll have to see what the
specific announcement is out of

683
00:36:23,300 --> 00:36:24,300
the Greek government.

684
00:36:24,300 --> 00:36:26,270
And we'll have to see -- again,
this is something that was

685
00:36:26,266 --> 00:36:27,836
reached within the eurozone.

686
00:36:27,834 --> 00:36:32,004
So I think it's -- European
leaders and Greek leaders will

687
00:36:32,000 --> 00:36:35,700
be working through those
issues in the days and --

688
00:36:35,700 --> 00:36:37,700
hours and days to come.

689
00:36:37,700 --> 00:36:39,970
Mr. Carney:
I'm going to let Mike
go, but Ben can stay,

690
00:36:39,967 --> 00:36:43,397
and I'm here if you have
something on other topics.

691
00:36:43,400 --> 00:36:47,470
The Press:
The event on Friday, do you see
that as a "mission accomplished"

692
00:36:47,467 --> 00:36:53,197
type of moment for President
Obama -- Libya support?

693
00:36:53,200 --> 00:36:56,800
Mr. Rhodes:
It's a unique opportunity
to do two things:

694
00:36:56,800 --> 00:37:02,800
In the first instance, I think
there has been -- frankly,

695
00:37:02,800 --> 00:37:05,830
we have not had the opportunity,
at least in the United States,

696
00:37:05,834 --> 00:37:08,104
to pay appropriate tribute
to the service members who

697
00:37:08,100 --> 00:37:10,300
participated in
the Libya operation,

698
00:37:10,300 --> 00:37:13,570
which we believe is a
hugely successful operation,

699
00:37:13,567 --> 00:37:17,067
saved thousands of lives, gave
the Libyan people a chance to

700
00:37:17,066 --> 00:37:18,296
end the Qaddafi regime.

701
00:37:18,300 --> 00:37:20,530
And we're going to have U.S.
service members at this event.

702
00:37:20,533 --> 00:37:21,903
We're going to have the U.S.

703
00:37:21,900 --> 00:37:24,370
military leadership that helped
lead this effort at the event,

704
00:37:24,367 --> 00:37:26,397
together with their
French counterparts.

705
00:37:26,400 --> 00:37:28,470
So, in the first instance, I
think it's an important chance

706
00:37:28,467 --> 00:37:30,797
for both the United States and
France to acknowledge really

707
00:37:30,800 --> 00:37:34,600
tremendous work done by pilots,
by sailors, by commanders,

708
00:37:34,600 --> 00:37:37,870
by many people who
participated in what was a very

709
00:37:37,867 --> 00:37:39,467
unique endeavor.

710
00:37:39,467 --> 00:37:41,467
Secondly, it's a chance to
underscore the alliance between

711
00:37:41,467 --> 00:37:42,837
the United States and France.

712
00:37:42,834 --> 00:37:45,634
I think Libya underscored the
seamless way in which we can

713
00:37:45,633 --> 00:37:50,033
coordinate both as bilateral
allies and through NATO.

714
00:37:50,033 --> 00:37:53,603
We've worked together at every
level of this operation,

715
00:37:53,600 --> 00:37:57,300
whether it was carrying strike
missions or providing refueling

716
00:37:57,300 --> 00:38:00,700
support, intelligence
support, command and control.

717
00:38:00,700 --> 00:38:03,630
The U.S. and France were able
to work together seamlessly,

718
00:38:03,633 --> 00:38:05,903
and that's a testament to a
broader relationship that we've

719
00:38:05,900 --> 00:38:11,130
had for centuries with
France as our oldest ally.

720
00:38:11,133 --> 00:38:13,833
So I think it's a chance for
the two leaders to, again,

721
00:38:13,834 --> 00:38:18,204
mark the fact that this NATO-led
mission certainly achieved all

722
00:38:18,200 --> 00:38:20,130
of its objectives.

723
00:38:20,133 --> 00:38:23,033
And it is also a testament
to the strength of NATO,

724
00:38:23,033 --> 00:38:24,603
the strength of the
U.S.-French alliance,

725
00:38:24,600 --> 00:38:27,070
and the service of the people
who will be there tomorrow.

726
00:38:27,066 --> 00:38:30,336
The Press:
-- who is coming?

727
00:38:30,333 --> 00:38:32,603
Mr. Rhodes:
From the U.S. side, we can
get you the specific list,

728
00:38:32,600 --> 00:38:35,800
but I think we anticipate some
of the military leadership at

729
00:38:35,800 --> 00:38:38,700
NATO will be in attendance.

730
00:38:38,700 --> 00:38:43,530
So we'll have a specific list,
but we expect our senior

731
00:38:43,533 --> 00:38:50,063
uniformed officers at NATO
will be participating.

732
00:38:50,066 --> 00:38:51,966
Mr. Carney:
Anybody else?

733
00:38:51,967 --> 00:38:54,937
The Press:
Just curious -- again,
it's speculation,

734
00:38:54,934 --> 00:38:57,334
but if Papandreou
offers to resign,

735
00:38:57,333 --> 00:38:58,763
if there's a
coalition government,

736
00:38:58,767 --> 00:39:02,297
is there a feeling that we
might not have a referendum,

737
00:39:02,300 --> 00:39:05,170
and would that be a positive
thing at this point?

738
00:39:05,166 --> 00:39:07,166
And is the President -- did
that come up at these meetings?

739
00:39:07,166 --> 00:39:10,666
And did the President support
any effort to try to --

740
00:39:10,667 --> 00:39:13,597
not effort, but any -- did he
say that it would be better if

741
00:39:13,600 --> 00:39:16,430
we could come out of this G20
without a Greek referendum?

742
00:39:16,433 --> 00:39:20,603
Mr. Rhodes:
Well, again, I'd say
a couple of things --

743
00:39:20,600 --> 00:39:23,100
and this is what I was alluding
to with Jessica as well.

744
00:39:23,100 --> 00:39:26,870
I think the steps that need
to be taken are clear, again,

745
00:39:26,867 --> 00:39:36,097
irrespective of the political
personality or situation at any

746
00:39:36,100 --> 00:39:36,930
given moment.

747
00:39:36,934 --> 00:39:41,304
In other words, what needs to
be done as relates to Greece,

748
00:39:41,300 --> 00:39:46,730
what needs to be done as relates
to stabilizing the eurozone was

749
00:39:46,734 --> 00:39:48,864
outlined last week.

750
00:39:48,867 --> 00:39:53,567
And those steps are going to
need to be taken going forward,

751
00:39:53,567 --> 00:39:58,897
irrespective of, again, where
we are at any given moment in a

752
00:39:58,900 --> 00:40:00,430
country's politics.

753
00:40:00,433 --> 00:40:03,433
Now, obviously, as the
leaders said last night,

754
00:40:03,433 --> 00:40:05,933
as Chancellor Merkel and
President Sarkozy said last

755
00:40:05,934 --> 00:40:11,064
night, their implementation of
their agreement with Greece was

756
00:40:11,066 --> 00:40:13,936
going to be affected
by the referendum.

757
00:40:13,934 --> 00:40:22,264
Their ability to, for instance,
provide funds while that was a

758
00:40:22,266 --> 00:40:25,766
point of uncertainty affected
their ability to implement in

759
00:40:25,767 --> 00:40:29,337
the near term, but it didn't
change the fact that the basic

760
00:40:29,333 --> 00:40:33,463
agreement and outlines of the
way forward from last week hold.

761
00:40:33,467 --> 00:40:38,037
So I think that's why it's
important to reinforce that the

762
00:40:38,033 --> 00:40:42,463
broader program is one that
still needs to be implemented.

763
00:40:42,467 --> 00:40:47,497
The Greek situation still needs
to be addressed but, similarly,

764
00:40:47,500 --> 00:40:50,030
whichever way it goes, you still
need to be taking these other

765
00:40:50,033 --> 00:40:53,903
steps on recapitalization, on
building a sufficient firewall

766
00:40:53,900 --> 00:40:57,000
that can allow the eurozone
to be stabilized and to move

767
00:40:57,000 --> 00:41:02,970
forward, irrespective of
whatever may be happening in one

768
00:41:02,967 --> 00:41:04,967
country at a given time.

769
00:41:04,967 --> 00:41:08,467
The Press:
Ben, a slightly different topic:
The President and others have

770
00:41:08,467 --> 00:41:10,537
said all along, Europe
has the capacity,

771
00:41:10,533 --> 00:41:12,603
Europe has the capacity
-- keep hearing that word.

772
00:41:12,600 --> 00:41:15,630
Particularly in the meeting
with Merkel this morning,

773
00:41:15,633 --> 00:41:18,603
any discussion of the
possibility that Germany could

774
00:41:18,600 --> 00:41:22,100
be putting up more than
they are in this situation?

775
00:41:22,100 --> 00:41:23,670
Mr. Rhodes:
Well, I think they're
discussing --

776
00:41:23,667 --> 00:41:28,667
we certainly believe that Europe
has the capacity to step forward

777
00:41:28,667 --> 00:41:34,267
and to provide the kind of
resources that can work through

778
00:41:34,266 --> 00:41:36,366
this period of time.

779
00:41:36,367 --> 00:41:38,837
The international community can
provide other types of support;

780
00:41:38,834 --> 00:41:41,934
the IMF can provide
certain types of support.

781
00:41:41,934 --> 00:41:44,864
And so I think what
they'll be flushing out,

782
00:41:44,867 --> 00:41:46,697
not just in their discussions
this morning but over the course

783
00:41:46,700 --> 00:41:51,130
of the next couple of days, are
what are the types of steps that

784
00:41:51,133 --> 00:41:54,333
individual countries
can take on their own,

785
00:41:54,333 --> 00:41:56,463
and what are the kinds of steps
that the international community

786
00:41:56,467 --> 00:42:00,637
can take as a whole
that can, again,

787
00:42:00,633 --> 00:42:03,103
move the implementation forward.

788
00:42:03,100 --> 00:42:07,430
So, again, for some
countries that will --

789
00:42:07,433 --> 00:42:10,933
that could entail
specific commitments.

790
00:42:10,934 --> 00:42:15,904
In other cases, it could involve
discussions about the role that

791
00:42:15,900 --> 00:42:17,730
the international community
can play through the G20,

792
00:42:17,734 --> 00:42:21,404
through the IMF
and other actors.

793
00:42:21,400 --> 00:42:23,130
Mr. Carney:
Let's get Fuji TV --

794
00:42:23,133 --> 00:42:24,333
The Press:
Thank you very much.

795
00:42:24,333 --> 00:42:27,203
It's a question about the
agenda of G20 meeting.

796
00:42:27,200 --> 00:42:31,670
Will an expansion of IMF
resources still be on the agenda

797
00:42:31,667 --> 00:42:33,037
of G20?

798
00:42:33,033 --> 00:42:36,303
And in my understanding,
United States is opposed to an

799
00:42:36,300 --> 00:42:38,500
expansion of IMF resources.

800
00:42:38,500 --> 00:42:41,570
Would you please tell me
the United States' stance?

801
00:42:41,567 --> 00:42:43,667
And then would you please
tell me the reason?

802
00:42:43,667 --> 00:42:47,897
And also, I'm wondering whether
President Obama talked about it

803
00:42:47,900 --> 00:42:51,630
during the bilateral meeting
with Germany and France.

804
00:42:51,633 --> 00:42:52,703
Thank you very much.

805
00:42:52,700 --> 00:42:55,570
Mr. Rhodes:
I'd just say a couple things.

806
00:42:55,567 --> 00:42:58,367
First of all, we believe the
IMF has a substantial amount of

807
00:42:58,367 --> 00:43:01,997
resources to deal with a range
of challenges in Europe and

808
00:43:02,000 --> 00:43:02,930
around the world.

809
00:43:02,934 --> 00:43:06,134
One big reason it does is
that the United States,

810
00:43:06,133 --> 00:43:10,033
together with other countries,
took significant steps in

811
00:43:10,033 --> 00:43:16,103
2008-2009 to make sure that the
IMF was appropriately resourced.

812
00:43:16,100 --> 00:43:19,100
I think as it relates to the
discussions here at the G20,

813
00:43:19,100 --> 00:43:22,230
the IMF is certainly part
of those discussions.

814
00:43:22,233 --> 00:43:27,803
I think what was discussed by
the leaders was more so the role

815
00:43:27,800 --> 00:43:32,970
that the IMF plays, rather than
some accounting of resources,

816
00:43:32,967 --> 00:43:37,337
I think, what can the IMF do to
support stabilization in the

817
00:43:37,333 --> 00:43:38,833
eurozone specifically.

818
00:43:38,834 --> 00:43:42,964
So the discussions flowed much
more towards what role the

819
00:43:42,967 --> 00:43:44,897
IMF plays.

820
00:43:44,900 --> 00:43:50,200
And the U.S., of course, as the
largest stakeholder in the IMF,

821
00:43:50,200 --> 00:43:52,800
has an important view
on those matters.

822
00:43:52,800 --> 00:43:56,500
But again, we
believe that the IMF,

823
00:43:56,500 --> 00:43:59,870
in large part because of the
steps that were taken in 2009,

824
00:43:59,867 --> 00:44:01,197
has a significant amount
of resources that it can

825
00:44:01,200 --> 00:44:03,470
bring to bear.

826
00:44:03,467 --> 00:44:06,067
Thus far, I think the
discussions have focused far

827
00:44:06,066 --> 00:44:10,936
more on the role that it plays
as one element of a response to

828
00:44:10,934 --> 00:44:15,334
the eurozone crisis rather
than an accounting of specific

829
00:44:15,333 --> 00:44:17,303
resources it might need.

830
00:44:17,300 --> 00:44:22,600
The Press:
The U.S. is still opposed to an
expansion of the IMF's funding?

831
00:44:22,600 --> 00:44:26,370
Mr. Rhodes:
Well, the United States has made
significant commitments as it

832
00:44:26,367 --> 00:44:29,467
relates to our contributions.

833
00:44:29,467 --> 00:44:32,637
There are not plans for the
United States to provide

834
00:44:32,633 --> 00:44:40,463
additional resources from --
again, from the U.S. to the IMF.

835
00:44:40,467 --> 00:44:45,937
But again, we can't speak to
what other countries may do.

836
00:44:45,934 --> 00:44:50,064
What we do want to address is
what is the role of the IMF,

837
00:44:50,066 --> 00:44:54,796
what type of steps does it take
to help address this crisis --

838
00:44:54,800 --> 00:44:56,230
because it's one
element, I think,

839
00:44:56,233 --> 00:45:04,363
of the response that will
be in place going forward.

840
00:45:04,367 --> 00:45:07,167
The Press:
Ben, so two questions
on the Greek situation,

841
00:45:07,166 --> 00:45:08,736
especially on referendum.

842
00:45:08,734 --> 00:45:12,534
So what kind of message or
explanation did the two European

843
00:45:12,533 --> 00:45:15,833
leaders provide to President
Obama this morning?

844
00:45:15,834 --> 00:45:18,934
I mean, was the tone
serious, serious?

845
00:45:18,934 --> 00:45:23,104
Or did they assure the President
that the Greek situation could

846
00:45:23,100 --> 00:45:25,000
be resolved eventually?

847
00:45:25,000 --> 00:45:28,070
Or can you give me a
sense of that tone?

848
00:45:28,066 --> 00:45:28,466
Mr. Rhodes:
Yes.

849
00:45:28,467 --> 00:45:31,797
Again, I think -- well, yes,
just on the Greek question,

850
00:45:31,800 --> 00:45:35,030
I think the European leaders
were very clear about this last

851
00:45:35,033 --> 00:45:38,633
night when they
said that, again,

852
00:45:38,633 --> 00:45:43,263
there's a plan that is agreed to
that is necessary to deal with

853
00:45:43,266 --> 00:45:46,666
the Greek situation in the
context of the broader effort

854
00:45:46,667 --> 00:45:51,437
now to stabilize the eurozone;
that insofar as there's a

855
00:45:51,433 --> 00:45:54,633
referendum introduced, that
that affects their ability to

856
00:45:54,633 --> 00:45:57,663
implement that plan and the
timeline upon which they

857
00:45:57,667 --> 00:46:02,337
implement that plan, but it
doesn't affect the basic premise

858
00:46:02,333 --> 00:46:05,533
of what needs to happen going
forward to deal with Greece and

859
00:46:05,533 --> 00:46:07,503
to deal with the
broader eurozone.

860
00:46:07,500 --> 00:46:11,570
So, again, I think their message
very much tracked I think what

861
00:46:11,567 --> 00:46:14,267
they were very clear about
to the Greek Prime Minister,

862
00:46:14,266 --> 00:46:16,666
to the public last
night, and again,

863
00:46:16,667 --> 00:46:20,737
with the President in
discussing how this affects

864
00:46:20,734 --> 00:46:21,764
the implementation.

865
00:46:21,767 --> 00:46:25,067
But the point I keep
underscoring here is that this

866
00:46:25,066 --> 00:46:28,296
is one piece of a broader
picture in the eurozone.

867
00:46:28,300 --> 00:46:33,370
The steps that need to take
place remain the same ones,

868
00:46:33,367 --> 00:46:35,567
whether it relates to
dealing with Greece,

869
00:46:35,567 --> 00:46:37,897
whether it relates to building
a sufficient firewall.

870
00:46:37,900 --> 00:46:42,830
And again, this is where I point
to some of the points we've made

871
00:46:42,834 --> 00:46:44,804
about how the United States
dealt with our crisis --

872
00:46:44,800 --> 00:46:48,570
that there are -- when you're
dealing with a financial crisis,

873
00:46:48,567 --> 00:46:51,037
obviously the situations
are different.

874
00:46:51,033 --> 00:46:52,963
There are lessons that can be
drawn from the way in which the

875
00:46:52,967 --> 00:46:55,537
United States brought
significant resources to bear,

876
00:46:55,533 --> 00:47:02,133
mobilized many different sectors
and levers that we had available

877
00:47:02,133 --> 00:47:05,263
to deal with that challenge, and
were able to restore confidence

878
00:47:05,266 --> 00:47:07,396
and restore stability in
the financial markets.

879
00:47:07,400 --> 00:47:10,670
Those are the types of
challenges that are confronted

880
00:47:10,667 --> 00:47:14,867
now by Europe's leaders, and
they're going to have to --

881
00:47:14,867 --> 00:47:18,197
they're going to be committed to
the program that they laid out

882
00:47:18,200 --> 00:47:22,470
last week, whatever the
particular situation is in

883
00:47:22,467 --> 00:47:23,697
Greece at the moment.

884
00:47:23,700 --> 00:47:27,100
But their ability to implement
the Greek part of it is going to

885
00:47:27,100 --> 00:47:28,970
be affected by whether or
not there's a referendum.

886
00:47:28,967 --> 00:47:32,067
The Press:
Did the possibility of
resignation by the Greek prime

887
00:47:32,066 --> 00:47:35,036
minister come up this morning?

888
00:47:35,033 --> 00:47:38,803
Mr. Rhodes:
No, it -- there was not,
like, a detailed discussion of

889
00:47:38,800 --> 00:47:40,500
Greek politics.

890
00:47:40,500 --> 00:47:46,370
I think there was a broad
recognition that Greece is going

891
00:47:46,367 --> 00:47:51,937
through a very difficult period
and very difficult challenges,

892
00:47:51,934 --> 00:47:58,434
that we all recognize, I mean,
the very seismic economic and

893
00:47:58,433 --> 00:48:04,633
financial challenges faced by
Greece that affect the way in

894
00:48:04,633 --> 00:48:06,233
which they approach
these decisions.

895
00:48:06,233 --> 00:48:09,363
But that doesn't change the
fundamental steps that need to

896
00:48:09,367 --> 00:48:11,697
take place that were
agreed to last week,

897
00:48:11,700 --> 00:48:14,030
and that's the plan of action
that the leaders are committed

898
00:48:14,033 --> 00:48:16,703
to when they have
confidence again.

899
00:48:16,700 --> 00:48:20,330
As they said last
night, they wanted to --

900
00:48:20,333 --> 00:48:22,433
they're going to have to
adjust the timeline of their

901
00:48:22,433 --> 00:48:26,063
implementation around a
potential referendum.

902
00:48:26,066 --> 00:48:31,966
The Press:
Ben, if you're also taking
non-G20 questions at this point,

903
00:48:31,967 --> 00:48:35,737
there's a report out that the
U.S. is considering moving into

904
00:48:35,734 --> 00:48:40,134
an advisory role for its
military mission in Afghanistan

905
00:48:40,133 --> 00:48:42,163
as soon as next year.

906
00:48:42,166 --> 00:48:45,966
Is it correct that this is --
that that is being considered?

907
00:48:45,967 --> 00:48:48,197
Is this is a decision
that's been made?

908
00:48:48,200 --> 00:48:50,100
What's actually going on here?

909
00:48:50,100 --> 00:48:55,300
Mr. Rhodes:
No, I would not suggest and it's
inaccurate to say that there is

910
00:48:55,300 --> 00:48:59,700
some -- that there's any
specific timeline beyond what

911
00:48:59,700 --> 00:49:01,100
the President has
already laid out,

912
00:49:01,100 --> 00:49:04,770
which is we're going to bring 
10,000 troops out of Afghanistan

913
00:49:04,767 --> 00:49:08,067
by the end of this year; we're
going to bring 33,000 --

914
00:49:08,066 --> 00:49:10,166
the full West Point surge --
out of Afghanistan by the end of

915
00:49:10,166 --> 00:49:11,666
next summer.

916
00:49:11,667 --> 00:49:15,697
That is nested within a broader
transition in which we are

917
00:49:15,700 --> 00:49:19,170
handing over security
responsibility to the Afghans.

918
00:49:19,166 --> 00:49:23,366
That transition will
be concluded in 2014,

919
00:49:23,367 --> 00:49:25,837
as agreed to in Lisbon.

920
00:49:25,834 --> 00:49:29,204
So as related to troop numbers,
all that the President has said

921
00:49:29,200 --> 00:49:31,770
and made clear is that there
will continue to be reductions

922
00:49:31,767 --> 00:49:34,967
in the numbers of U.S. forces
in Afghanistan at a steady pace

923
00:49:34,967 --> 00:49:37,667
after next summer.

924
00:49:37,667 --> 00:49:40,067
But we don't have a
specific timetable yet,

925
00:49:40,066 --> 00:49:42,196
beyond the one that the
President has already laid out.

926
00:49:42,200 --> 00:49:44,570
As relates to the advise
and assist mission,

927
00:49:44,567 --> 00:49:47,497
certainly a part of transition,
as we've seen in Iraq,

928
00:49:47,500 --> 00:49:50,330
is the role of the U.S.
changes in the country.

929
00:49:50,333 --> 00:49:54,033
So just as in Iraq we
transitioned to Iraqi security

930
00:49:54,033 --> 00:49:57,033
forces and then we ultimately
moved into an advise and assist

931
00:49:57,033 --> 00:50:01,133
role, similarly, in Afghanistan
we anticipate that as the U.S.

932
00:50:01,133 --> 00:50:04,833
undertakes a transition, at a
certain point the Afghans will

933
00:50:04,834 --> 00:50:07,734
be fully in the lead for
security in their country,

934
00:50:07,734 --> 00:50:09,104
and the U.S. will be
in an advisory role.

935
00:50:09,100 --> 00:50:13,200
But we don't have a specific
date that has been identified

936
00:50:13,200 --> 00:50:17,000
for when that transition
will take place.

937
00:50:17,000 --> 00:50:23,470
The Press:
And just also on the IEA --
the international nuclear agency

938
00:50:23,467 --> 00:50:23,997
and Iran --

939
00:50:24,000 --> 00:50:26,270
Mr. Rhodes:
This is one of those rare
occurrences where the acronym is

940
00:50:26,266 --> 00:50:27,136
harder to say than the full --

941
00:50:27,133 --> 00:50:29,663
The Press:
Than the actual thing.

942
00:50:29,667 --> 00:50:30,237
Mr. Rhodes:
Yes.

943
00:50:30,233 --> 00:50:35,763
The Press:
Is there any preparations being
taken for direct Western action

944
00:50:35,767 --> 00:50:39,667
if Iran were to move
ahead next week,

945
00:50:39,667 --> 00:50:42,437
as has been reported
is possible?

946
00:50:42,433 --> 00:50:44,763
Mr. Rhodes:
Again, I think what we're
focused on is a diplomatic

947
00:50:44,767 --> 00:50:51,097
strategy, which, insofar as
Iran continues to be outside of

948
00:50:51,100 --> 00:50:54,100
international law, outside
of its obligations,

949
00:50:54,100 --> 00:50:57,330
increases the pressure on the
Iranians through financial

950
00:50:57,333 --> 00:50:59,133
pressure, through
economic sanctions,

951
00:50:59,133 --> 00:51:01,463
through diplomatic isolation.

952
00:51:01,467 --> 00:51:03,797
So that will continue to be
the focus of our efforts.

953
00:51:03,800 --> 00:51:08,030
We'll want to ramp up those
efforts in response to Iranian

954
00:51:08,033 --> 00:51:09,163
failure to meet
their obligations --

955
00:51:09,166 --> 00:51:13,096
as we have done, steadily, in
building up our own sanctions

956
00:51:13,100 --> 00:51:16,600
with likeminded nations
over the course of the last

957
00:51:16,600 --> 00:51:17,970
couple of years.

958
00:51:17,967 --> 00:51:21,797
But again, I would underscore
that what we'd be focused on is

959
00:51:21,800 --> 00:51:24,600
continuing a diplomatic
effort to pressure and isolate

960
00:51:24,600 --> 00:51:30,030
the Iranians.

961
00:51:30,033 --> 00:51:35,103
The Press:
Out of Greece, there was any
specific discussion regarding

962
00:51:35,100 --> 00:51:40,130
other vulnerable countries
like Spain and Italy?

963
00:51:40,133 --> 00:51:44,503
And if I may come back to IMF --
there is any specific position

964
00:51:44,500 --> 00:51:49,470
on the possibility that the fund
will finance in the future not

965
00:51:49,467 --> 00:51:53,997
only sovereign governments
but also organizations like

966
00:51:54,000 --> 00:51:57,470
the EFSF?

967
00:51:57,467 --> 00:51:59,937
Mr. Rhodes:
In the first instance,
I think, yes,

968
00:51:59,934 --> 00:52:03,764
insofar as there was a
discussion of the need to build

969
00:52:03,767 --> 00:52:07,037
a firewall so that you didn't
have a contagion that could

970
00:52:07,033 --> 00:52:10,563
spread across the eurozone area.

971
00:52:10,567 --> 00:52:13,737
Obviously there are
banks that have risk;

972
00:52:13,734 --> 00:52:19,364
there are countries -- Spain
and Italy among them --

973
00:52:19,367 --> 00:52:20,597
that have risk.

974
00:52:20,600 --> 00:52:25,330
So it was discussed in that
context of how do we move

975
00:52:25,333 --> 00:52:27,333
forward in a way in which the
Europeans are implementing their

976
00:52:27,333 --> 00:52:30,633
plan of recapitalizing or
building that firewall that can

977
00:52:30,633 --> 00:52:37,003
give sufficient confidence that
they are addressing the crisis

978
00:52:37,000 --> 00:52:38,200
in the eurozone area.

979
00:52:38,200 --> 00:52:41,930
With the IMF, I think it didn't
get into that level of --

980
00:52:41,934 --> 00:52:46,334
I think it was just a broader
discussion about what role the

981
00:52:46,333 --> 00:52:51,033
IMF can play both in supporting
reforms that need to take place

982
00:52:51,033 --> 00:52:55,303
and being a source of
support going forward.

983
00:52:55,300 --> 00:53:02,200
And so I think it was -- the IMF
is going to be a piece of this;

984
00:53:02,200 --> 00:53:06,600
it's not going to be the
whole solution, obviously.

985
00:53:06,600 --> 00:53:10,430
And so therefore, given the
IMF's role, given its expertise,

986
00:53:10,433 --> 00:53:15,863
given its resources, I think it
focused on what is the IMF's

987
00:53:15,867 --> 00:53:18,997
role as an element of
implementation and an element of

988
00:53:19,000 --> 00:53:22,330
the plan that the Europeans
have agreed to in October.

989
00:53:22,333 --> 00:53:23,763
Mr. Carney:
Let's just do two more.

990
00:53:23,767 --> 00:53:28,267
The Press:
Ben, just to elaborate
on that if you could --

991
00:53:28,266 --> 00:53:31,736
what role can the IMF take
that's different than it's

992
00:53:31,734 --> 00:53:37,464
already taken, it being
a member of the troika,

993
00:53:37,467 --> 00:53:40,567
giving out cash to Greece,
Ireland and Portugal?

994
00:53:40,567 --> 00:53:44,567
Are we talking about a more
senior role in determining what

995
00:53:44,567 --> 00:53:48,237
the programs are than
Europe has already given it?

996
00:53:48,233 --> 00:53:50,203
Mr. Rhodes:
No, I'd put it in the
current context, which is,

997
00:53:50,200 --> 00:53:54,200
the IMF has played a role in
dealing with different solutions

998
00:53:54,200 --> 00:53:56,300
and different countries.

999
00:53:56,300 --> 00:54:00,470
And going forward, it's going to
continue to be a resource and a

1000
00:54:00,467 --> 00:54:06,667
part of a response, but it's not
going to be the sole element of

1001
00:54:06,667 --> 00:54:07,297
a response.

1002
00:54:07,300 --> 00:54:09,600
So I think it was in the
continuum of the role that the

1003
00:54:09,600 --> 00:54:12,370
IMF has played and will
play going forward,

1004
00:54:12,367 --> 00:54:17,367
recognizing it is a source of
resources and expertise and can

1005
00:54:17,367 --> 00:54:20,567
provide impetus for very
important structural reforms

1006
00:54:20,567 --> 00:54:25,237
that need to take place
in a number of places.

1007
00:54:25,233 --> 00:54:26,333
The Press:
Thank you.

1008
00:54:26,333 --> 00:54:29,633
Tomorrow, the President will do
a joint TV interview for French

1009
00:54:29,633 --> 00:54:32,863
television with the French
President, Nicolas Sarkozy.

1010
00:54:32,867 --> 00:54:35,597
It's the first time,
according to our researchers,

1011
00:54:35,600 --> 00:54:39,030
that an American President is
doing this kind of thing with a

1012
00:54:39,033 --> 00:54:41,363
French President in power.

1013
00:54:41,367 --> 00:54:46,697
Are you aware that it can give
a boost to President Sarkozy in

1014
00:54:46,700 --> 00:54:51,070
this very sensitive
political French year?

1015
00:54:51,066 --> 00:54:56,966
Mr. Rhodes:
Well, I think what the -- the
fact that they're doing both the

1016
00:54:56,967 --> 00:55:01,097
event tomorrow and the interview
underscores the very close

1017
00:55:01,100 --> 00:55:03,300
partnership that they've
developed over the course of

1018
00:55:03,300 --> 00:55:07,900
nearly three years now, and
the friendship between the

1019
00:55:07,900 --> 00:55:08,870
two Presidents.

1020
00:55:08,867 --> 00:55:14,067
I think that what we've seen
over the course of nearly three

1021
00:55:14,066 --> 00:55:16,836
years now that President Obama
has been in office is we've had

1022
00:55:16,834 --> 00:55:20,634
to deal with extraordinary
economic challenges at home and

1023
00:55:20,633 --> 00:55:22,533
then we've had to deal with
extraordinary global challenges

1024
00:55:22,533 --> 00:55:25,963
that include economic
ones as well abroad,

1025
00:55:25,967 --> 00:55:28,237
and as the President
has traveled the world,

1026
00:55:28,233 --> 00:55:30,933
as he's attended
summits like this,

1027
00:55:30,934 --> 00:55:34,004
he has developed very close
relationships with a number of

1028
00:55:34,000 --> 00:55:37,800
leaders that I think have been
an important resource so that

1029
00:55:37,800 --> 00:55:40,430
they can pick up the phone,
have very frank and candid

1030
00:55:40,433 --> 00:55:43,503
discussions, as they have over
the course of the last several

1031
00:55:43,500 --> 00:55:45,200
months leading up
to this summit;

1032
00:55:45,200 --> 00:55:46,430
as he has with
Chancellor Merkel,

1033
00:55:46,433 --> 00:55:48,833
as he has with other leaders.

1034
00:55:48,834 --> 00:55:52,464
So I think it speaks to the fact
that the President has invested

1035
00:55:52,467 --> 00:55:55,837
a lot of time in making sure
that the United States is

1036
00:55:55,834 --> 00:55:59,134
postured to play a leadership
role in the world;

1037
00:55:59,133 --> 00:56:02,103
that part of that effort is the
relationships that he has with

1038
00:56:02,100 --> 00:56:04,830
his counterparts; and that
among those relationships,

1039
00:56:04,834 --> 00:56:07,634
there's none more important than
his relationships with our core

1040
00:56:07,633 --> 00:56:11,663
allies, be they European
allies, Asian allies.

1041
00:56:11,667 --> 00:56:15,337
So I think the events
flow out of that,

1042
00:56:15,333 --> 00:56:19,033
flow out of the very natural
cooperation that they've

1043
00:56:19,033 --> 00:56:22,003
developed, whether it's on
something like Libya or whether

1044
00:56:22,000 --> 00:56:24,570
it's on something like
the global economy.

1045
00:56:24,567 --> 00:56:28,297
Obviously, the French political
calendar is what it is.

1046
00:56:28,300 --> 00:56:32,530
But this is very much more
rooted in just the fact that we

1047
00:56:32,533 --> 00:56:36,303
wanted to, with the French,
underscore the partnership

1048
00:56:36,300 --> 00:56:38,400
between our nations as we
deal with a very tough set

1049
00:56:38,400 --> 00:56:39,130
of challenges.

1050
00:56:39,133 --> 00:56:42,703
The Press:
But with the popularity of
President Obama in France,

1051
00:56:42,700 --> 00:56:46,130
it's a huge boost for a French
leader to do that tomorrow.

1052
00:56:46,133 --> 00:56:49,503
I mean, it's a dream for
President Sarkozy to have

1053
00:56:49,500 --> 00:56:53,630
President Obama with
him on a TV interview.

1054
00:56:53,633 --> 00:56:57,103
Mr. Rhodes:
Well, again, I think
President Obama's --

1055
00:56:57,100 --> 00:57:00,470
insofar as President Obama has
a great deal of popularity in

1056
00:57:00,467 --> 00:57:04,397
European countries, in Asian
countries, African countries,

1057
00:57:04,400 --> 00:57:07,630
Latin American countries, what
we focus out on is how can we

1058
00:57:07,633 --> 00:57:10,463
develop better
partnership abroad;

1059
00:57:10,467 --> 00:57:15,137
how can we work and develop
relationships with countries to

1060
00:57:15,133 --> 00:57:18,133
deal with challenges like the
global economy, like Libya.

1061
00:57:18,133 --> 00:57:24,403
And I think, frankly, that the
President's efforts at building

1062
00:57:24,400 --> 00:57:28,100
back the standing of the United
States in the world has had a

1063
00:57:28,100 --> 00:57:31,570
direct benefit to the United
States in dealing with security

1064
00:57:31,567 --> 00:57:35,267
challenges, like
terrorism, like Libya,

1065
00:57:35,266 --> 00:57:38,936
and dealing with economic
challenges through the G20.

1066
00:57:38,934 --> 00:57:43,764
So, again, I think as it related
to President Sarkozy and the

1067
00:57:43,767 --> 00:57:48,137
President's standing in France,
we see that as a sign of the

1068
00:57:48,133 --> 00:57:52,733
health of the alliance, the
importance of the alliance,

1069
00:57:52,734 --> 00:57:55,834
the importance of their
cooperation to deal with a set

1070
00:57:55,834 --> 00:58:00,704
of very difficult challenges at
a very complex time in terms of

1071
00:58:00,700 --> 00:58:04,730
both the security and political
situation in the world.

1072
00:58:04,734 --> 00:58:07,464
And that's I think the message
that they'll be able to

1073
00:58:07,467 --> 00:58:09,637
underscore tomorrow.

1074
00:58:09,633 --> 00:58:16,063
We'll, of course, leave it
to the French voters to make

1075
00:58:16,066 --> 00:58:19,296
decisions about their future.

1076
00:58:19,300 --> 00:58:21,100
Mr. Carney:
Thank you all very much.