‘EU woes weigh heavily on US economy’

United States President Barack Obama has warned that Europe’s woes could have a “very real” impact on the US economy, urging the congress to pass his $447 billion jobs bill.

“Our economy really needs a jolt right now. The problems Europe is having today could have a very real effect on our economy at a time when it’s already fragile,” AFP quoted Obama as saying on Thursday.

Obama urged US congress to pass his $447 billion plan aimed to stimulate the economy and create more jobs, saying that “It will boost economic growth, it will put people back to work,” noting that the US Senate, where even support from his own Democratic party lawmakers is uncertain, is set to vote on the bill next week.

“This jobs bill will help guard against another downturn if the situation in Europe gets any worse,” he added.

The Obama administration has said the new bill includes various tax cuts for businesses, such as a payroll tax cut as well as tax credits for companies that hire veterans or those who have been unemployed for more than six months.

Meanwhile, Obama admitted that US economic growth had slowed this year, but said a combination of production glitches brought on by the Japanese tsunami disaster, the Arab Spring and debt woes were largely to blame.