Obama holds bipartisan economy talks
By Edward Luce in Washington DC

Published: July 29 2008 03:00 | Last updated: July 29 2008 03:00

Barack Obama yesterday welcomed three prominent Republicans, including two former officials in the George W. Bush administration, to an "economic summit" aimed at displaying his bipartisan credentials.

The meeting, which followed Mr Obama's week-long tour of the Middle East and Europe, coincided with worsening economic news as the administration estimated that next year's budget deficit would jump to almost $500bn (£250bn).

It also came amid growing Republican concern about the sometimes confused economic message of John McCain, Mr Obama's rival for the presidency.

Mr McCain's tax and spending proposals would add an estimated $3,400bn to the US deficit over the next decade compared with an estimated $700bn deficit reduction from Mr Obama's plans, according to the Tax Policy Center, an independent think-tank.

The Obama campaign yesterday said the widening budget deficit was a further testimony to what it said was the administration's "unprecedented fiscal irresponsibility". "The deficit is an important issue because Senator John McCain is proposing to continue the same Bush economic policies that put our economy on this dangerous path and that will drive America even deeper into debt."