President Juan Manuel Santos proposed a study yesterday in the Union of South American Nations (UNASUR) on how to limit the economic damage of a U.S. default
Santos suggested that the body evaluate options available to member companies to deal with the economic fallout expected if the U.S. fails to raise its debt limit by August 2.
The president called for a joint meeting of South America’s economic ministers as well as Mexico’s to address the currency reevaluation that is affecting the regions economies. Colombia’s peso has risen significantly in recent months, although it fell slightly yesterday.
Santos also called for more public spending to stimulate South American economies, “rather than watching as spectators as jobs are destroyed by the re-evaluation of our currency.”
The proposed meeting would occur on August 10 or 11 in Argentina. Currently the U.S. has not been able to agree to a plan to raise its debt limit. Different plans are circulating in the Senate and the House, with the House scheduled to vote on its plan today. If the U.S. cannot raise the limit it will have a 40% hole in its budget this August.