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The British daily newspaper The Independent is reporting this morning that the Obama administration is trying to persuade European leaders to hold off on implementing any sort of Greek exit from the euro until after the November 6 presidential elections in the United States.Many analysts and economists have discussed the potentially disastrous ramifications of Greece leaving the euro in a disorderly fashion, including the spillover effects into the U.S. economy and financial markets.
According to The Independent, the Obama administration is concerned this would negatively affect its re-election chances in November:
The Obama administration will pressure European governments not to let Greece fall out of the eurozone before November’s Presidential elections, British Government sources have suggested…American officials are understood to be worried that if they decide Greece has not done enough to meet its deficit targets and withhold the money, it would automatically trigger Greece’s exit from the eurozone weeks before the Presidential election on 6 November.
They are urging eurozone Governments to hold off from taking any drastic action before then – fearing that the resulting market destabilisation could damage President Obama’s re-election prospects. European leaders are thought to be sympathetic to the lobbying fearing that, under pressure from his party in Congress, Mitt Romney would be a more isolationist president than Mr Obama.