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First, ECB intervention to stabilize borrowing costs.
Alarmed by the forecast but unwilling to act without Republican cooperation, Obama formed the commission to stabilize borrowing by 2015.
Treasury officials say that European policy makers need to build a "fire wall" to stabilize borrowing costs for afflicted euro zone members.
"The idea is to stabilize borrowing costs, especially for countries who are complying with their reform goals, and this should be clearly separated from the idea of a bailout," Mr. Monti said.
Rather than roughly $2 trillion in savings, the White House is now seeking a plan that would slash more than $4 trillion from annual budget deficits over the next decade, stabilize borrowing, and defuse the biggest budgetary time bombs that are set to explode as the cost of health care rises and the nation's population ages.
[1] From the Post: "The White House is now seeking a plan that would slash more than $4 trillion from annual budget deficits over the next decade, stabilize borrowing, and defuse the biggest budgetary time bombs that are set to explode as the cost of health care rises and the nation's population ages.
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Gregg retired last year after serving with Coburn and Crapo on the bipartisan fiscal commission that recommended stabilizing borrowing by trimming tax breaks and sharply cutting spending.
Although borrowing will stabilize, the national debt will remain at historically high levels, the CBO said, stuck above 70percentt of the economy throughout the next decade.
Economists are hoping that consumer borrowing will stabilize in coming months and resume growing, although they caution that the rebound will be restrained by tighter credit restrictions imposed by many banks in the wake of the financial crisis.
Even if the government's annual borrowing were to stabilize at 4 percent of G.D.P., its total debt would continue to grow faster than its revenues.
The debt increased sharply during the financial crisis as the government borrowed heavily to stabilize the economy.
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