Debt deal important for stability of world markets: Letta

The Italian PM met President Obama in his office hours after the US government reopened

The passage of the debt ceiling deal and budget agreement that ended the US government shutdown will help all economies by keeping world markets stable, visiting Italian Prime Minister Enrico Letta told US President Barack Obama.

The two leaders met just hours after the US government reopened after a 16-day shutdown prompted by the lack of consensus between Obama and Congress on how much money the government should spend.

During the Oval Office meeting in the White House, the Italian leader congratulated Obama for his success in this regard, which not only ended the 16-days stalemate, but also increased the debt ceiling till February.

"First of all, I congratulated President Obama, for yesterday's success is his success, but it is also our success, because yesterday's decision was very important for the stability in the markets in the world, in Europe and in Italy," Letta told reporters in a joint media availability.

"We need stability because we have such a big debt, so we need to have low interest rates," said Letta, the first foreign leader to meet Obama at the Oval Office after the end of the financial and budget crisis that had hit the America for more over two weeks now.

In his remarks, Obama made no reference to the debt ceiling or government shutdown. He, however, offered his vote of confidence in the leadership of Letta, saying that he was moving his economically troubled European country in the right direction.

"I think it's clear that Italy is moving in the right direction in stabilising its finances and embarking on reforms that will make it more competitive," he said.

The two leaders spent a lot of time discussing the importance of European growth.

"The challenges that have been created since 2008, as well as the challenges within the Eurozone, I think it's important for all of us to coordinate. The United States obviously is not part of Europe, but we have a great interest in Europe because if Europe is doing well, that means that we're doing well also," Obama said.

The Italian prime minister said that both in the G8 and G20 meetings, both the countries have very important common positions in fighting against fiscal evasion, fiscal avoidance, fiscal havens and protectionism.