Budget cutbacks in Britain, Europe spell more trouble for U.S. economy - by Don Lee, Henry Chu and Tom Petruno

The European debt crisis sent more shock waves rumbling toward the U.S. economy Monday as British Prime Minister David Cameron announced drastic cutbacks in government spending and Germany pressed ahead with its own austerity plans — steps that are almost certain to impede America's recovery.

The European policy decisions are likely to have a negative effect on the creation of new U.S. jobs, the United States' competitiveness overseas and the strength of the global economy overall.

In Britain, Cameron warned that spending cuts would be felt "for years, perhaps even decades." And German Chancellor Angela Merkel, who presides over Europe's biggest economy, announced similar plans for spending cuts, higher taxes and other belt-tightening measures.

For more: Budget cutbacks in Britain, Europe spell more trouble for U.S. economy - San Jose Mercury News