Obama and Merkel discuss Greek crisis

US President Barack Obama and German Chancellor Angela Merkel discussed the debt crisis in a phone call and stressed the importance of support to aid Greece.

“They discussed the importance of resolute action by Greece and timely support from the IMF and Europe to address Greece’s economic difficulties,’ according to a White House statement.

Earlier, Merkel said Greece’s international bailout must be accelerated for the sake of the entire eurozone. She was speaking at a Berlin press conference with International Monetary Fund chief Dominique Strauss-Kahn, who echoed Merkel’s warning.

“What is at stake is certainly today the economic situation of Greece, but it is more than that,” Strauss-Kahn said. “Because Greece is part of the eurozone, because of the solidarity system of the eurozone. It’s the confidence in this zone which is at stake, and that is why we need to act swiftly and strongly.”

Both spoke as Spain had its credit rating lowered. That came just a day after the status of Greek government bonds was lowered to “junk” and Portugal had its rating lowered as well.

Europe has a number governments that are running huge budget deficits due to recession in the past two years and who have borrowed heavily to plug the gap.