system operational. tomorrow, we will shape the next state in our engagement with afghanistan. we will complete position of security responsibility to the afghan by the end of 2014. we will continue to support them for the long term together with our partners, we will meet president karzai, leaders of many countries in the region and beyond and key international organizations. this will be a powerful demonstration of the commitment of the whole international community to the future of afghanistan. we will also meet 13 of our most active partners around the globe from europe to asia and the

middle east. because, today security challenges are global and they need global solutions. that is why nato will continue to cooperate with partners from right around the world. we will build on our successes so that we can provide more security for nato, for our partners and for the world. >> how concerned are you that we are only witnessing the beginning of the rest of exit of afghanistan? what are the promises you got for the future? >> there will be no rush for the exits. we will stay committed to our

operation in afghanistan and see it through to successful end. our goal, our strategy our timetable remains unchanged. with regards to president's statements, first of all, i'm not surprised that the newly elected president hollande wants to keep his pledges. think that's rule number one for politician to keep your promises. i want to take a note of the fact that president hollande france will be prepared to support afghanistan in a different way. that's very much in accordance with the strategy we outlined already when we met two years ago. we are in the process of

gradually handing over lead responsibility to the afghans. as we do that, the road of our troops can gradually change from combat to support and the number of our troops can also gradually be reduced. but all of that will take place in a coordinated manner. i am confident that we will maintain solidarity within our coalition. >> [inaudible] >> the question is about roots through pakistan. yes, i do hope that we will see a reopening of the transit roots

in the very near future. we have for quite some time had a dialogue with pakistan. we have negotiated. these negotiations will continue. i'm hopeful that they will be concluded in a positive manner so that we will see a reopening of the roots in the very near future. >> [question from the audience] >> no, i'm concerned about distracting attention from our

summit. i'm pleased that we, the people of nato conference, live in free societies where freedom of expression is a fundamental value. that also includes the possibility to press your views through -- express your views through demonstration. i would expect such demonstrations would take place in a peaceful manner. let me stress that we have went out to the groups of protesters. one of my assistant secretary generals met recently with representatives of the protester. they got an opportunity to convey their messages directly to nato. we got an opportunity to explain

exactly what nato stands for. >> [question from the audience]. >> the question. afghanistan in the long term. let me stress, my statement was not in particular addressed to canada. it's a general statement from me as secretary general of nato that i would appreciate if nato allyies and also partners would continue to contribute to the nato and training mission that will start in 2015. that also answers the second

part of your question. i hope that canada would be in a position to contribute to training activities also after 2014 or today. canada conducts training activities in afghanistan and we appreciate that contribution. i hope to see a continued contribution after 2014. but having said that, let me also stress that at thent of the day, it is -- end, it is a national decision. >> one last question. [question from audience]. >> i think the clear message from this summit will be that we

stay committed to our operation in afghanistan, that we will continue to transfer, to hand over lead responsibility to the afghans according to the plan. we have laid out already, when we met in 2010. this process has, as you all know, already started today around half of the afghan population lives in areas where the afghan have taken lead responsibility. soon it will be three quarters. this process will be completed by the end of 2014. that will also be the message from this summit that we will continue that transition process according to the plans we have laid out already. >> thank you very much. that's all we have time for now. obviously, there will be a press conference in the next couple

hours. >> all right, good morning everybody. it is a great pleasure to welcome president karzai to my home to up in chicago after he extended hospitality to me during my visit to kabul recently. during trip to afghanistan, we were able to finalize strategic partnership agreement that reflects a future in which two southern nations, united states and afghanistan are operating as partners to the benefit of our country citizens but also for the benefit of peace and security and stability in the region and around the world. i want to thank president karzai for his cooperation and his delegation and hard work in helping us to achieve this

strategic partnership agreement. the nato summit is going to be largely devoted to ratifying and reflecting the broad consensus that so many of our partners and members have agreed to. one in which we are working with the afghan. over the next several years to achieve a complete transition to afghan lead for afghan security, one in which we continue to provide support for the afghan national security forces that have made excellent progress over the last several years. also painting a vision, post-2014, in which we have ended our combat role. the afghan war we us is over by

our commitment to friendship and partnership with afghanistan continues. so, the strategic partnership agreement, this nato summit all part of a shared vision that we have in which afghanistan is able to transition from decades of war to a transformational decade of peace and stability and development. i just want to express my appreciation for the hard work that president karzai has done. he recognizes the enormous sacrifices made by the american people and most profoundly by american troops as well as the troops of our other coalition partners. we recognize the hardship of the afghan have been through during these many years of war. both of us recognize that we still have a lot of work to do

and there will be great challenges ahead. the loss of life continues in afghanistan. there will be hard days ahead. we're confident that we are on the right track and what this nato summit reflects is the world that is behind the strategy that we've laid out. now it's our task to implement it effectively and i believe that we can do so in part because of the tremendous strength and resilience of the afghan people. hope for the better future, they will have a friends in united states of america. president karzai welcome. i'm looking forward to

continuing to work to implement the plan that we've laid out. >> thank you mr. president. we have had good meeting today in which afghanistan is committed to the transition process. and the completion of partners in 2014. afghanistan no longer a burden of the united states and our other allies. afghanistan is looking forward

to an end to this war and a transformation of decades in which afghanistan will be looking for development of founder and governance of country. a better economy where afghans will be taking steps towards aspects of life. in the meantime, the community will be with us. to make sure that we take steady steps and while we're making those steps towards 2024, afghanistan will be largely defending itself and providing

for itself. mr. president, the partnership that we signed a few weeks ago in kabul, has turned a new page in our relations. as the new page is a page of two sovereign countries working together for the mutual interests, security and all areas of concentration. mr. president i'm bringing to you and the people of the united states, the gratitude of afghan people for support of taxpayers money over the past decade and for the difference it has made for the afghan people toward education and health and the building of afghan government. mr. president, afghanistan is

fully aware of the task ahead and what afghanistan needs to do to reach the objectives that we all have, a stable and peaceful afghanistan. in the meantime, until then, thank you for your support. >> thank you mr. president. >> thank you. >> thank you guys. i'm going to have a press conference. >> the nato summit wraps up in chicago tomorrow. we'll bring you coverage of the closing news conference with president obama starting live at around 4:30 p.m. eastern time here on c-span. later in the day, the president spoke at the nato summit's opening plenary. where he also addressed the

security transition in afghanistan. he followed remarks from nato secretary general rasmussen. this is about 10 minutes. >> ladies and gentlemen, we have come here in chicago for our 25th nato summit. i can't think of no better host city than chicago. because, like nato, chicago draws together many cultures. it's diverse, dynamic and determined. many hundreds of thousands of people from chicago past and present, came from nato countries in europe and from canada. so, chicago is the perfect place to renew our commitment to the vital bond between europe and

north america in the 21st century. to reaffirm our determination to defend our freedom and security and protect our shared values. because in a fast changing world, we remain each other's indispensable partner. together we will chart the course for future engagement in afghanistan. we will make sure we complete transition to afghan security leads by the end of 2014 and we will make clear our commitment to a long term partnership with the afghan people beyond 2014 so that afghanistan never again hobble terrorists that can attack us at home. so that afghans can look forward to a better future in a stable region. together, we will keep nato capable of responding to the

security challenges of tomorrow. because, no country and no continent can deal with them alone. we must embrace a renewed culture of cooperation to provide more security at lesser cost for all of our citizens. and together, we will make our partnerships deeper, broader and stronger, because today's threats are no longer confined within national borders. our unique network of partners spans the growth from western europe to east asia and from north africa to the south pacific. for over 60 years, nato has kept us safe and it has helped keep the world secure. we know many of the challenges of the 21st century. we also know that the future is unpredictable.

but together, we can face the future with confidence whatever it holds. united by shared values and shared purpose. we can find common solutions for common challenges. it's my pleasure to now pass the floor to president obama. mr. president. >> thank you very much mr. secretary general. anders, i want to take this opportunity on behalf of all of us, to thank you for your outstanding leadership over these past three years. i want to begin by welcoming each and every one of you to my hometown. i hope everybody enjoyed themselves. i understand some took a architectural both tour, some

have run along the lake front. chicago is a great place and we look forward to having you back again. as anders mentioned, so many people here in chicago trace their roots back to nato countries. it's especially fitting that chicago is the first american city outside of washington d.c. ever to host a nato summit. i want to take the opportunity to salute admiral, general allen. men and women serving in uniform. for over 60 years it's been the bedrock of our security and freedom and prosperity.

though times may have changed the fundamental reason for our alliance has not. our nations are stronger and more prosperous when we stand together. good times and in bad our alliance has endured. in fact it has drived -- thrived. we seen this from the cold war from the balkins from afghanistan to libya. when we last met, we agreed to a bold plan of action to revitalize the alliance to ensure we have the tools to require the front of changing. here at this session, we can reaffirm our article five commitment to investing in the

defense capabilities and new technologies that meet our collective security needs. in these difficult economic times we can work together and pool our resources. nato is a force multiplier. the initiatives we endorse today will allow each of to accomplish. now in chicago, we are delivering. over the next two days, we'll meet. first as alleys and then president karzai to charge the next phase of afghanistan. just as we sacrifice together for common security, we will stand together united in our determination to complete this mission. finally i look forward to our meeting with nato's neighbors and our partners around the world who have been so critical

to nato operations as in afghanistan and libya. it will be another reminder that nato is truly a hub of a network of global security partners. there's nothing else like it on earth. so, again, thank you mr. secretary general for your outstanding leadership. welcome to chicago. i'm confident the next two days are going to help sustain and strengthen the strongest and most successful alliance that the world has ever known. >> on thursday british prime minster david cameron spoke to the -- eurozone. he said the 17 member eurozone was at a crossroad and decide to

whether to make up or break up in the u.k. is not part of the eurozone. the prime minster took questions for this 40 minute event.

>> we are well on the way on this journey. since they took office, we have cut the last deficit by more than 1/4. yesterday we had encouraging news on unemployment. the number of people up by 100,000. the number of new business start-ups was what of the highest in our history. now more than ever, this is the firm.me to stand we are moving in the right direction, not rushing the task of judging it carefully. that is why we must resist dangers of voices.

yes we are doing everything we can to return this to strong stable economic growth. we will not do this by returning to the something for nothing economics that got us into this mess and the first place. we cannot boiled the budget of more spending and more debt. it will be to squander all the progress that we have made in the last two tough years. it would actually mean tough decisions lasting even longer. it would risk our future. it is a cop out. in keeping britain safe and building the recovery we need, we face three challenges. first, a shovel to recover from a deep recession at home. second, turbulence coming from the eurozone. third comment the uncertainty on whether the world is on the right path and how best to

support growth. we need to find the right answer. our answers must be rooted in reality of the global situation. this is not a conventional economic crisis of the time. this is a debt crisis. deficit reduction and growth are not alternatives. delivering a vital. if markets do not believe that you're serious about the debt, your interest rates will rocket. your economy will shrink. britain cannot cut itself off from what happens elsewhere. the problems in the arizona are affecting britain, it too. as they prepare, we should be both resolutions and confidence. we will do what it takes to

shelter the uk. outside the euro, we do have greater flexibility. we have our on central bank with responsibility for financial stability. we have trade relationships with all parts of the world. we invest more around the world per-capita than america. this set a new record of 13 billion pounds. we will make the most to drive the program and secure the banks that will be necessary to keep our interest rates low. we should be confident because of our strength. general motors has given the work force a fantastic votes of confidence. the u.k. government gave the full backing. the euro supported the necessary changes.

it is truly a british success story. the car industry is growing. term positive in the first quarter since the first time since 1976. it is such as our car industry that is strong. britain has a strong base from which to grow. we have a time zone breaking trade with asia and the morning in america and the afternoon. with the states, we can see britain through the store.

we must get to grips with the deficit. let us be clear about what we inherited. an economy built on the world deficit since the second world war, the most indebted households, of the biggest housing booms and unsustainable levels of public spending and immigration. with a budget deficit of over 11% of our gdp, one half of every third spent was actually borrowed. britain spends over 120 million pounds every single day just to pay the interest on our past borrowing. it will increase every day until we live within our means as a country. 1 and the key tasks that brought the coalition together was to deal with the deficit.

that is the only path to prosperity. that is exactly what we are doing. we are on track. it is a long-term project. it is painstaking work. the tough decisions we have taken on deficit reduction are beginning to yield real results. there can be no deviation from this. those who argue that we should spend more want us to borrow more, driving up our deficit and debt and putting our hard-won credibility at risk. higher interest rates would mean higher mortgage rates, lower employment, and more money being wasted paying interest on our national debt. we must not and will not let this happen. getting our debt under control is necessary for growth. it is not sufficient. our fiscal policy is being matched by a monetary policy. that is the best way to support demand and to rebalance our economy from debt consumption and toward investments.

the bank of england is able to do more to support the economy if necessary. visible response ability to military activism is the right macroeconomic mix for our over indebted economy. additional ingredients is that the government needs to do is the radical reform to make our economy competitive including deregulation and things that business has a regularly asked for. some things are absolutely essential in the short term. our companies need to invest more. banks need to lend to small and medium-sized businesses to create the scheme that will create 20 billion pounds. builders need to build more so we are scrapping 1000 pages of planning rules.

we need the confidence to get out there and into the housing market so we are backing mortgages to give people and new homes. there is a massive shortage of housing. we need to get that market moving again. there are things that will take longer but will still make a vital difference. we need to rebalance our economy. we're supporting new enterprises that will spread growth and jobs across the country. and a 2.4 billion regional growth funds. we need to get behind the industries of the future. we're backing the high valued industries like green technology and aerospace. we needed to make it easier to take on new workers. we have tribunals.

we need to develop the skills along the work face. that is why we delivered 450,000 in the last year alone welcomed by the public commission. we need to do more. we are treating universities for 14-19 year olds, completing part of our education system that never should have been left out. this is a government about the long term. we are focused on delivering them. we are investing in infrastructure, building high- speed rail, finding new ways to finance roads. it always pays to have a job to get a job. we're building a culture to live a life without benefits. we will build schools so the

next generation has the ambition to match the best in the world. this is our plan for growth. short-term, medium-term, long term. i believe there is more we can do. we can use the hard-won credibility of the balance sheet to help the economy grow without adding further to our debt. let me tell you what this means. in many areas, we are using the credibility we have learned to parcel the benefits of low interest rates for families. we have the credit easing program for small businesses. we have mortgage help for those to what new homes. there are guarantees for new infrastructure -- who want new homes. there are guarantees for new infrastructure programs. that put them to the best possible use. building a recovery is hard

work. we are building a new model of growth. some people ask why we did not have more economy in the queen's speech. if you can legislate your way to growth, we would. the truth is, you cannot. you need to pick the problems of parts and find the things that hold our economy back and single them out step by step. a government that is committed to be on the side of enterprise, entrepreneurs, and hard-working people right across the country. that is what i am committed to delivering. just as in britain, we need to deal with the deficit and restore competitiveness. the same is true of europe. this is a debt crisis. the deficit that caused these

that have to be dealt with. growth in the eurozone has evaporated completely. without the recent german figures, it would be any risk -- in a recession. this affects us, too. as the governor of the bank of england said, the biggest risk to recovery in the u.k. stems from the difficulties facing the euro area. based on flows along, britain is more than six times as exposed as the united states. that is before you factor in the impact of confidence and our financial systems. this government was formed in the midst of a debt crisis in the year is done. two years later, little has changed. that is the backdrop against

which we have to work. i believe it is only right we set out our views. we need to be clear about the long-term consequences of every single currency. in britain, we had one for centuries. when one part of our country struggles, another part stepped forward to help. a -- system that let down each state monetary flexibility but let's dump physical transfers can only result -- but let down physical transfers can only result in an adjustment. there are three things that need to happen. first, at the high deficit below competitive this country's do need to confront their problems head on. -- high deficit, low competitive countries do need to confront their problems head on. the idea that high deficit countries can spend their way to recovery is a dangerous

delusion. it is becoming increasingly clear that they are less likely to sustain that necessary adjustment economically or politically. that is the core of the eurozone including the european central bank. it does more to share the burden of the adjustment. in britain, we are able to adjust through a flexible exchange rates. we're supplementing that stimulus with active intervention such as credit easing and guarantees for new infrastructure projects. i welcome the opportunity to explore new options at a european level. to rebalance your economy at a time of global economic weakness, you need more fundamental support.

germany's finance minister is right to recognize that rising wages could play a part in correcting these imbalances. about the future of the bureau. third, we need to address europe's overall lack of economic dynamism that remains its achilles' heel. estate are becoming less competitive compared to the rest of the world. -- states are becoming less competitive compared to the rest of the world. i formed an unprecedented

alliance with 11 other eu leaders setting out an action plan for growth and jobs in europe, pushing for a single market in energy and digital. they are sitting there waiting to be taken if we can show the political leadership to get it done. the eurozone is at a crossroads. it either has to make up or break up. i dare europe has a committed and stable successful eurozone -- either your paszek committed instable successful eurozone -- either europe has a committed in stable successful eurozone or it does not hear it is in britain's interest for the eurozone to sort out its problems. whatever pappas chosen, i am prepared to do whatever is necessary -- path is chose, i am prepared to do what ever is necessary to secure our system.

it is not just about the measures we take at home where the steps our neighbors take in europe. in the world ever more competitive, it is also about the steps we take with our global partners to protect herself against global contagion. over the coming weeks, i will be flying to camp david to fight what was right for britain in the summit. that is committing together to make the reforms we need to get our economy's growth working again.

it means insisting those reforms to make sure our banks are safe by implementing regulatory standards. it means recognizing the risk and working together to ensure our energy security. most of all, i believe it means getting together to give the world economy be one big stimulus that can make a difference, the expansion of trade freedoms. [unintelligible] that does not mean we have to give up on free trade. there is good work that we can salvage like the measures to break down the bureaucracy of getting goods across borders. i am overseeing a commitment to rolling back protective measures that are already in place. i want us to move forward so countries that want to can forge ahead with ambitious trade deals of their own. we all benefit from the investment that these deals can bring.

for us, that means getting e you in touch -- eu industry is finalized and preparing to negotiate with the u.s. that could be the single biggest deal that could benefit britain. why is this so important? the opportunity for britain and abroad have never been so big. we need to work harder than before to seize them. yes competition has increased. we have seen the rise of new economies in latin america and in africa. the globalization of supply as many new competitors making products and more jobs going abroad. now these countries are not just producers, and they are consumers.

they spend more money on products for britain can excel. the globalization of demand means new countries demanding our projects. that can feel new jobs here at home. if we make the most of this, and there are huge opportunities to secure a great future for our country. i believe we can look ahead with confidence. i cannot predict how this crisis will end for others. i cannot pretend that britain will be immune from the consequences either. this i can promise. that we know what need to be done and we are doing it. getting the deficit under control. getting the foundations for recovery in place.

defending the long-term interests of our country and holding to our course. i will do what ever it takes to keep britain safe from the storm. thank you very much for listening. i look forward to answering repressions. thank you. -- answering your questions. thank you. [applause] let's have the gentleman here. >> we welcome your comments about the announcement this morning. there was a survey saying 87% believes the government is adopting the right strategy for developing the sector. half are not confident in the next decade. given the government's point of rebalancing, what would your response? >> manufacturing is an essential part of the economy. we should stop talking down the good part of the economy that we have that we can build on. we are one of the world's top 10 manufacturers.

he take the car industry, that is an important figure. -- we take the car industry, that is an important figure. it is hard to find a car manufacturer in britain that is not expanding. nissan is going full guns. honda, fantastic business, full of investments. land rover cannot produce cars fast enough to put into the chinese market. we are a great manufacturer. we need to do more to get behind manufacturing and rebalance our economy. when you have an economy that is so much based on a housing boom or uncontrolled migration, it is hard and painstaking work to rebalance that model that could not work anymore.

we have seen what a rush -- a mirage it was. we are looking into expanding it across the country and making sure we are exported all over the world, not just on our doorstep. i would say to manufacturers here in the northwest, the government is behind you. we are investing in apprenticeships. we are building the infrastructure you need. we are listening to you about energy costs. we want to help you grow and expand. to those that say that britain

cannot do it, the car industry demonstrates that is not the case. it can be done. the government is committed to making sure it can be done. bbc. >> do you think it is helpful to speculate publicly about the breakup of the year ago -- euro given a few days ago your own chancellor said that was given the instability? a lot of people agree that if greece exits' we are in uncharted territory. is that a policy you can keep? >> it is more dangerous to stay silent. it is essential to speak out about what needs to be done to safeguard the eurozone, britain, and take the steps to deliver the strong one we want. we're not going to join the euro. we relish the freedoms we have outside the result. what happens in the eurozone at fax us. -- affects us. we have been consistent. i have been talking about building up the firewall, safeguarding europe's banks, it

taking decisive actions over greece, making sure you have a year as though that is credible. it is dangerous to stay silent -- a eurozone that is credible. it is dangerous to stay silent. you cannot pull out the drawbridge is. it does -- draw bridges. it does affect us. we should do everything we can to work with our partners in in europe to make sure everything that need to be done to safeguard the situation is being done. making a speech like i am today is an important part of that. >> given what you have said, do you think that the eurozone is

doomed to fail? given that there is a groundswell of opinion that the u.k. should get out of europe, is it time to hold a referendum on this issue? >> on the issue of britain and europe, we want for britain what is best for britain. what is best to be in the european single market. our businesses need access to those markets. we need a say in how those rules are set. we need access. it is essential. i do not believe leading the european union is the right answer. we need to be fighting for our investment. it does not mean you have to join everything. britain should stay out of the euro.

we do better having our own currency. if something comes up that is not in our interest, like the treaty, it was not in our interest. i vetoed it.. on the issue of the year is no, we have to understand that the -- eurozone, we have to understand that members wanted to work. it is in our interest for there to be a working eurozone. what i am saying is that if we wanted to function properly, and there are decisions that have to be made about the future. what is damaging is the uncertainty of their not being the right clarity about what needs to be done. there are steps that have to be taken to secure the future of the currency and confident in its. britain will play its part in a constructive decisions. >> you said you would do all you could to prevent britain from

suffering in the storm. you did not mention the effect on those suffering in the u.k.,, the losers in this situation most of whom were not responsible for the situation we are in. how do you feel about that? >> there are many people who face difficulties because of our economic situation. we have had to make cuts in public spending and welfare. i believe the way the government has gone about this is fair.

the best way we can help people is to get them a job. that is why the focus of the government activity, which is the biggest back to work program have had in our program and 60 years is tailored to help the people. help the neediest people all. and the past, work programs tended to take recently unemployed people and put them through a system and try to get them into some form of work so that the welfare to work provider can collect the check. the work program is completely different this time. we are saying to these welfare to work providers, if you can take someone who has been on incapacity benefit and out of work year after year and who is complete -- and who has completely forgot what is like to work, we will pay you a serious amount of money but only if you get them into work and they are still working after

months and years. this is a deeply compassionate use of a clever system of payment by results to say we will use all the tools we have our part -- disposal to help the neediest people in our country to get what they really need which the dignity and money that comes from work. i absolutely back up what the government is doing in terms of an act of compassion agenda to help those in need help the most. >> i set my business of 20 years ago in the last tory government. i employ just short of 200 people. we are in the top 100 fastest- growing companies of last two years. i think we know something about growing a business. i have found that the rhetoric coming out of the government has been somewhat anti-business and anti-success. adopting that is constructive or supported. you have said many times that

the entrepreneur hours and small to medium-size businesses are the key to driving this economy. you drive and growing business by motivating your top salespeople and by incentivizing. i'm not sure the government is being bold enough with that tax structure to incentivize the entrepreneur is equally. you should bus to a planet that is not working. your are constantly moving in business and adjusting. we want this country to be great and put be great to back into britain. your colleague needs to moderate his language because we need to grow this economy. >> first of all, i would

challenge do to find any agenda that business has asked for or the entrepreneur is specifically at best for that we have not taken on in the government. business asks for planning reform and we have delivered. business asks for deregulation and we are delivering. maybe not as fast as you like, but there is a very clear agenda. business assets for tax reform and we are using the little money we do have to cut corporate tax rates and to cut the top rate of tax because we believe it is not competitive with the rest of the world even though it is not necessarily popular thing to do here. on the issue of water per north which i take seriously, i have a unit and number 10 downing street to advise me about how we make the tax system more effective for people who want to start agribusiness -- i always ask them what more can we do to expand enterprise investment schemes? they say to me that we think you have made some big step forward

that there are other things we can do we will tell you that right now, the first starting and growing a business, the tax system here is very, very favorable. if you start a business this year and put capital gains into a, you will not pay any tax on those capital gains not only this year but not ever on those gains. i would challenge you to say there are more agendas that business and entrepreneurs want, give them to me because i will put them in place. i think the language is important and this is frank a challenge. everybody in the country knows and this is a case where you are the most -- we are the most rabid supporter of free enterprise.

some things went wrong and our financial services industry there was a system of pay and bonuses that not only did not serve those banks but certainly did not serve the rest of the economy. i think the challenge for politicians, because we are responsible for language and setting the town, is we have to make clear that when we say there were unexpected -- unacceptable practices and the banks and financial services that cause some of the problems we face, we should be very careful that that rhetoric does not in any way reflect that we don't want people to succeed in business or succeed in manufacturing or, indeed, to succeed in finance. i want this to be a country where people grow up wanting to take part in business and set up companies and create wealth and create jobs. we have to get that rhetoric right and i am absolutely committed to that but the

challenge is how do you do that while at the same time trying to clear up some of the unacceptable practices that happened in the past. it is a political challenge in one that i am happy to take on. one last question from the lady here -- >> i have had my own business for about 10 years. my biggest single constraint in a micro business and upper nor is child care. it is the biggest cost i have to run my business and also the accessibility of flexible child care. there are plenty of well educated women who cannot be in the business world because they cannot get the balance right. one idea would ask your team to have a look at is can we make a business expense that would optimize my business and allow me to do more? >> you raise a really important point. sometime tomorrow i will make announcements as to how we help with child care and parenting. people in the media think we should not be talking about child care. you are right, the two things are linked.

if we can be a more family- friendly country and have family-friendly businesses, if we can work out how to help mom's back into the workplace, then we will have a stronger economy and a better society and will bring up our children better. the two agendas are absolutely linked. we have been helping well-off parents get back into the work force. we have increased the hours of free verse reach of care for mothers with two-year olds and up 3-year-old so they can start looking for work and start getting back into the job market. i am attracted to the idea of making child care tax allow will for the reasons you give because it seems so odd that to make other things tax allowable but this would help get people back to work. the issue is where the money comes from.

with everything we do, someone else's tax break is someone else's tax burden. we have a limited amount of resources and firepower, where do we put the fire power? i hear what you said. if we put firepower behind child care more affordable child care, that will help people come back into the workplace. it is not only about money. it is also about how we regulate and how we legislate around child care. i had a recent case in my constituency of a very good child minder who had been doing brilliant work with the neighbors. the regulatory burdens were too great and the child minder said she was not a nursery school. i think we need to look at the regulatory burdens we are putting on to britain's childminders and child care is so we can have a system where we are looking after our children properly so we're also helping people get back to work to grow our economy.

the agendas are not separate. the two things are linked in a sensible government that cares about family will bring them together. i thank you all very much again for coming and thanks to iod for the excellent work you do supporting enterprise. we have suggestions and ideas and tax changes and regulation changes and things that you think would help of motor the british economy, get them to mate. we are a pro-enterprise, pro- business government and we will do everything we can to support the british recovery. thank you very much indeed. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2012] >> met romney speaking in i above last week. he called the debt america's nightmare. he talks about his plan to reduce federal spending. this is the first time he campaigned since placing second in the iowa republican caucuses in january. he spoke for 20 minutes.

>> thank you for that warm welcome. thank you for your introduction. we have wonderful friends in this room. i appreciate the chance to see you again. it is good to be back in iowa. so many friends told a very special place in my heart. i appreciate your coming to spend moments with me today. i'm talking to you about an issue that affects the heart of america. i what is much more than a collection of beautiful farms and small towns and cities. it is also a collection of the values that built america and that has sustained as proothrouh good times and bad. it is good work. it is taking care of our neighbors. it is family, common-sense.

these are not the values that lead to out of control spending sprees are to piling up debt that you know that your children and grandchildren will have to pay up. these are not the values of putting out difficult decisions with the hope that someone will solve it. today america faces a financial crisis of debt in spending that threaten what it means to be an american. here in the heartland, you know that is wrong. , if they did not look around for someone else to save them. they knew the survival was up to them.

a prairie fire of debt is sweeping across iowa and the nation. every day that we fail to act, the fire gets closer to the homes and children will love. you know this is not solely a democrat or a republican problem. the issue is not to users they must blame. to dossue is who is going t what it takes to put up the of fire. people have watched president obama with congress controlled by his own party. read it and putting out that spending fire, he has been feeding its. he has spent more and borrow more. the time has come for a liter who will lead. i will lead us out of this debt and spending inferno. we will stop borrowing unfathomable sums of money from

foreign countries where never going to visit. i will work with you to make sure we put out this spending and borrowing fire. [applause] a lot of people think this is a problem cannot solve. i reject that kind of defeatist talk. it is wrong. it is wrong. washington has been spending too much money. the policies have taken us backward. even a former mcgovern campaign that democrats should no longer try to govern by proposing a new program for every problem. president obama tucked away the

clinton doctrine in his large drawer of discarded ideas, along with transparency and bipartisanship. [applause] it's enough to make you wonder if maybe it was a personal beef with the clintons. but really it runs much deeper. president obama is an old school liberal whose first instinct is to see free enterprise as the villain and government as the hero. america counted on president obama to rescue the economy, tame the deficit and help create jobs. instead, he bailed out the public-sector, gave billions of dollars to the companies of his friends, and added almost as much debt as all the prior presidents combined. the consequence is that we are

enduring the most tepid recovery in modern history. the consequence is that half of the kids graduating from college can't find a job that uses their skills. half. the consequence is that retirees can no longer get by on savings and social security. the consequence is that the length of time it takes an unemployed worker to find a job is the longest on record. this is why even those who voted for barack obama are disappointed in him. disappointment is the key in which the president's re- election is being played. americans will not settle for four more years of the same melancholy song. we can and we must do better. president obama started out with a near trillion-dollar stimulus package the biggest, most careless one-time expenditure by the federal government in history.

and remember this -- the stimulus wasn't just wasted it was borrowed and wasted. we still owe the money, we're still paying interest on it, and it'll be that way long after this presidency ends. then there was obamacare. even now nobody knows what it will actually cost. and that uncertainty has slowed our economy. employers delay hiring and entrepreneurs put the brakes on starting new businesses, because of a massive, european- style entitlement that americans didn't want and can't afford. when you add up his policies, this president has increased the national debt by five trillion dollars. let me put that in a way we can understand. your household's share of

government debt and unfunded liabilities has reached more than $520,000 under this president. think about what that means. your household will be taxed year after year with the interest cost of that debt and with the principal payments for those liabilities. they will struggle with the interest on our debt. president obama is adding to them every single day. that is the best case scenario. the interest rate could go up like a rocket. there's also a good chance that it could cause us to hit a wall like they have been greece and spain and italy. separate mortgages came close to bring the economy to its knees.

this debt is america's nightmare mortgage. it is adjustable, and no money down, and assigned to our children. politicians have been trying to hide the truth about this nightmare mortgage for years -- just like liar-loans. this is not just bad economics -- it is immoral. we must stop it. [applause] let me give you some ideas. during my time in business and in state government, i came to see the economy as having three big players the private sector, the states and localities, and the federal government. of the three, the private sector is by far the most efficient and cost-effective in providing the products they want.

scores and scores of businesses and thousands of entrepreneurs are competing to deliver a product that is better than anyone else's. they're trying to come up for something better. think about smart phones. the blackberry got things going. now the android is leading the market. then apple came in. now the android is leading the market. there's so many people trying to come up with better ways of better products. the customer is going to benefit from all of this.

government does not begin to compare when it comes to the change that provides less expensive services and projects. it cannot compare with the private sector. the states and localities are more competitive. by far the slowest and the least responsive sector is the federal government. it has no competition. just imagine that the federal government was the sole legal supplier of cell phones. they would still be under review. you've been listening to hearings in congress on cell phones. the contract would go to an obama donor. they come out looking about the size of a shoe with a collapsible solar panel attached to them.

[applause] of course campaign donors would be lining up to see who could get appointed to become the app czar. this is an important point. as president obama and old school liberals and absorb more of our economy into government, the government gets bigger and bigger. everything we do becomes more expensive and less useful. government makes america less competitive. the more government, and the more expensive it is. what president obama is doing is not all old. i want to make the government simpler, smaller, and smarter. [applause]

this is part of the brilliance. they recognize individual citizens pursuing their own dreams would be able to create a more vibrant life for the american people than the government. that is why what i'm describing is consistent with our competition. i do not believe that this can be solved with more taxes. if you do not the washington a bigger share of your paycheck. instead of putting more limits on your enterprises, we need it cleared from the governments. [applause] right now the federal government spends about a quarter of the entire economy. i want to bring that down to 20% of the economy within four years so we have dramatically scale back the intrusiveness and

size of borrowing. the president assumes an expansion of government. i will halt the expansion of government and repeal obamacare. [applause] working together we can save social security without making any changes to the system for people nearing retirement. we have two basic options to do that. no change for current retirees. one would be a tax increase for high-income retirees. the other would be to decrease the rate of benefit growth for high-income retirees to be. i favor the second option. it protect everyone who is in the system. it also avoids higher taxes that drag down the economy and make it harder for jobs. i've also proposed a plan for

medicare that keeps its solvent and slows the rate of growth of costs in health care. both reforms are relatively simple compared to the far more difficult choices we will face if we do nothing. medicare and social security are very easy to demagogue. i expect the president to continue doing that throughout the campaign. americans are on to that game. i'll not insult the voters by pretending we can keep putting off entitlement reform. i will continue to speak honestly to the american people. if elected, i will do what is right for the people of this great country. [applause] the president has made very

little effort to rein in redundancy and waste. think about these numbers. in 2011, the government accountability office found 34 areas where agencies or initiatives in the federal government overlapping objectives. reducing the redundancy could save over $100 billion. a year later, on may 3 of the 34 areas has been fully addressed. only one program has been defunded. in 2010, 17 federal government agencies gave 7.7 billion more to the united nations than is required under our agreement. another example. there are 94 programs that encourage green building. the report found that they results are "unknown."

we seeing the so overhead on a anti-poverty programs. last year the federal government spent $600 billion on more than 100 anti-poverty programs. they're designed to help those that cannot help themselves. my approach is entirely different carried move programs to states or to the private sector where they can be run more efficiently and more we can do a better job helping the people who need our help. shut down programs that are not working. cut them off. get rid of them. obamacare, number one.

of course, streamline everything else has left. it is time for the people of america to take back the government of america. we will get that job done. [applause] entitlement reform, doing away with the redundancy and wasting government in shifting services and programs to the economic player who can deliver them best, these are the serious steps toward getting our debt and spending under control. above all, we need to shake off the big government mindset of these past few years and of the limits and regulations that go with them. we need a big turnaround. it will require a focus, unrelenting, long term agenda. instead of leading the world on how much we borrow, we got to continue leading the world on how much we build.

with all that we have been through comment the challenges can seem awfully big. some may wonder if we have lost our confidence. confidence is not what is missing. all that is lacking now is leadership. these have been years of disappointment and decline. but if they put them behind us. we can prosper again with the powerful recovery we've all been waiting for. above all, at the opportunities the co to our children and our grandchildren. all this can be more than a help. it can be our future. it can begin this year in the choice you make. i am asking for your help, your support, your vote on the sixth of november. this is a year where we decide what kind of america we are going to have. it is more and more borrowing. it is a nightmare. i am convinced that you will see a resurgence in our manufacturing sector. a resurgence in innovation.

my vision is a bright and prosperous future. we are not weeded down with the problems of the past if we have a leader who understands the potential of the future. with your help, working together, getting iowa, which in america back on track. so you can be confident your children will have a brighter future. god bless this great country.