It's the European economy, stupid: US recovery hangs on solving debt crisis - by Dominic Rushe

A year ago most US politicians' interest in Greek spreads was confined to the relative merits of hummus and taramasalata. These days they are hot debate topics alongside Italian bond yields and a host of European financial arcana. The reason? It's the economy, stupid.

As the fragile US economy continues to rise slowly out of the abyss, Europe looks like its gravest threat. Apart from the occasional, and spectacularly unsuccessful, nudge from the sidelines the US has had to watch Europe's mounting debt crisis from afar and the sense of frustration is palpable.

"This is of huge importance to our own economy," Obama said last week after meeting Herman van Rompuy, European council president; José Manuel Barroso, European commission president, and others. "If Europe is contracting or if Europe is having difficulties, then it's much more difficult for us to create good jobs here at home."

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