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Europe to blame for US economic woes?

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    Former Prime Minister of Great Britain Tony Blair responds

  • Duration 3:24
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Treasury Secretary Timothy Geithner knows who's to blame for the poor economy and it is not the White House look.

Know what hurt us in 2010 and eleven was the crisis in Europe the prices in Japan and -- that oil price shock.

But as as fears of those things have receded a bit the economy turned to strengthening -- that's good.

Well before prime minister of Great Britain Tony Blair here now with his reaction that's prime minister thanks -- coming to the couch and -- -- -- also ask you to react.

And keep with -- Treasury Secretary said.

What he's got a point I mean you you know I've always in the global economy today if if if Europe goes back then that'll affect you it'll affect us I mean you the UK's on in the single currency but.

If -- Chill wind blowing to the single currency area immediately impacts on us and so we gotta hope that the European.

Economy sorts itself filed with the changes.

That they make up changes that will save the single currency and then we can move forward but at the moment it's still very shaky.

A lot of Americans right now look to Europe and they say oh we don't want to become like Europe like the economy that we see there.

Do you see that from across the pond should Americans do what European nations have dot what you're about to undergo a huge change.

BC says so only institutions that Europe created after the war you know him well fatter and pensions and public services.

The truth is nearly 21 century even -- -- from the financial crisis.

We -- gonna have to reform those.

There -- those institutions because the world today is different.

And even for example something like demography in that change in the -- profile of the population.

Means that you bound to change so my point -- about the financial crisis.

Is that it's exposed on need to change it doesn't actually created it and you wherever you are in the world today in the developed world.

The truth is government itself is gonna have to reform and change the private sectors got -- undergo constant process of adjustment.

That the world's changing around us that we've got to change ourselves in a sea change only happens when it has to change so you maybe need a crisis in order to change but these two schools of thought.

Let's print the money let's put the stimulus and and let's cut back like great Britain's done.

Austerity what what what's the right move in your mind right this -- watching this should be a right or wrong judgment not a right to left judgment.

You know in other words how -- you calibrate.

Getting your public finances in order but not doing it it's such a way that you choke -- growth.

That's the issue.

The really tough and -- European economies right now.

Is that happy to do -- structural change in circumstances where they're coming back very -- on spending.

They growth states.

And then they've got a problem managing that situation politically and economically so.

The yeah I think you've got to calibrate you can measure -- very carefully you've got to have a long term deficit reduction plan.

But you gonna do it in a way that that still lousy economy to keep moving and the tough thing in Europe.

Is people come to value that.

That currency in order to get -- -- should America be looking at what's happening in Europe.

And not do the same type of policy that's what I would with the which gives.

Pretty obvious that we -- undergoing massive structural change you do you guys I going to be looking at that -- you know you've got -- and challenges and she's here I know but.

The fact is in Europe we gonna have to make those changes -- our system and -- woods.

The European social model has is that will have to change pretty fundamentally.

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