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Political Adviser Axelrod Says US Will Push Egypt for Reforms (Transcript)

Jan. 28 (Bloomberg) -- White House adviser David Axelrod talks with Bloomberg's Al Hunt about Egypt's political unrest and the need for democratic "reforms" in the country. Bloomberg's Hans Nichols and Lisa Lerer discuss President Barack Obama's State of the Union address and Egypt's government. Bloomberg's John McCormick reports on Rahm Emanuel's bid to succeed Richard M. Daley as mayor of Chicago. Margaret Carlson and Kate O'Beirne discuss Obama's speech and the Republican Party's response. (Source: Bloomberg)

White House adviser David Axelrod said in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend, that the Obama administration will push Egypt “very hard” to make democratic reforms in response to demonstrations challenging President Hosni Mubarak’s rule.

(This is not a legal transcript. Bloomberg LP cannot guarantee its accuracy.)

AL HUNT: We begin the show with the president’s senior adviser, David Axelrod, who joins me in our Bloomberg studio. Thank you for being here, David.

DAVID AXELROD: Great to be here, Al.

HUNT: The president said he was reaching out in the State of the Union. In response, Paul Ryan said the lousy economy is Barack Obama’s fault, we’ve got to slash spending, cut taxes. Mitch McConnell said we’ll compromise if he comes to our positions. They kind of gave you the back of the hand, didn’t they?

AXELROD: Well, you know, I think the question is really where the American people are. And I think the American people are looking for us to cooperate.

Al, you’ve been around a long time and you know that there’s a process to this. There’s a pacing to it. We’re going to submit a budget in a few weeks. They’re going to have to turn some cards over and be a little more specific about what they’re thinking, and we’re going to engage in a discussion.

There’s tremendous momentum for - among the American people for compromise, for progress. I think that’s going to push everyone in the right direction.

HUNT: One of the first tests will be the debt ceiling. Republicans say you’re going to have to agree to specific budget cuts before they’ll pass any extension. Is that reasonable?

AXELROD: Well, first of all, we are submitting a budget that is going to be a very significant budget in terms of the cuts that we’re willing to make. You know, some of them are going to be painful for us. And our seriousness will be clear. Again, they’ll have to introduce some specifics.

You know, on the debt ceiling, we have - look, we have to deal with our deficit challenge. We have to deal with the long- term debt issue. But let’s be clear. If we - if we made every cut - and they haven’t been specific - but the size of cuts the Republicans are talking about, you’d forestall the need to lift the debt ceiling by 15 days.

So it’s not really a - that’s - let’s be serious about this. And I think at the end of the day - at the end of the day I expect people to act responsibly and understand that we’re not going to play politics with the full faith and credit of the United States of America.

HUNT: So the debt ceiling should not be linked to spending cuts?

AXELROD: I think that we should be serious about spending cuts, and we are going to be serious about spending cuts, but I don’t think we should play politics with the - with the debt ceiling.

HUNT: He also mentioned Simpson-Bowles as a good starting point for long-term deficit reduction, but he said there were things he didn’t like. What doesn’t he like about Simpson- Bowles?

AXELROD: Well, again, you know, we’ve been very circumspect, because we don’t want to - we don’t want to delimit our discussions. And when you begin to pick things out, then you are - then you are doing that.

Obviously, you know, Social Security was one area of concern. But he believes that the - the commission did a good- faith - made a good-faith effort. They certainly drew bright lines around the problem and are giving us an impetus to begin discussions.

HUNT: The president in 2009, I believe, gave an eloquent address in Cairo on the importance and the value of democracy. There are now demonstrations throughout Egypt, and the government is setting curfews, tear gas, calling out the army today, cracking down, ignoring U.S. pleas to try to be more flexible and open. Is the U.S. once again supporting - in the position of supporting an authoritarian government over the wishes of the people?

AXELROD: Well, let’s be clear. The president - you know, Egypt has been helpful on some regional issues there, and we recognize that, but the president’s been very clear with President Mubarak for the two years that he’s been president about the need to have democratic reforms in Egypt and to recognize the universal rights of the Egyptian people. And we certainly feel that way today. The answer is not tanks in the street. The answer is reform.

HUNT: Can we look for a more forceful U.S. response then, than calling for less tanks in the street?

AXELROD: The president - the president is - well, we’ve made - we’ve made our views clear, and we’re going to continue to do so. The president is monitoring this on a minute-to-minute basis, as is the team at the White House. I think Secretary Clinton has spoken to this today. So we are going to push very hard to do what we can to make sure that the rights of the Egyptian people are recognized and are taken into account.

HUNT: David, has the president spoken to President Mubarak today?

AXELROD: He has not. I don’t believe he has.

HUNT: Isn’t there a case for calling President Mubarak?

AXELROD: Well, I think that there have been - there’s been outreach between our government and - and President Mubarak, but he’s spoken to him recently, and even in those governments recently, he repeated the need for democratic reforms in that country.

HUNT: And do you think that this pro-democracy uprising is going to spread to other countries in the Middle East?

AXELROD: Well, you know, I think it’s - especially in the world in which we live - and given the modern technology that we have - you know, the yearning for - for - for democratic rights, the yearning - the expressions you see there are ones that we’ve seen in Tunisia and elsewhere. And I don’t think you can put the genie back in the bottle.

HUNT: Let me turn to one or two more issues, other issues. The president vowed in the State of the Union to veto any bill that had earmarks in it. I think the last year he was in the Senate, he got $98 million of earmarks for the state of Illinois. It wasn’t a big campaign issue for him, and Senate Majority Leader Reid said the president is just playing power politics with that - with that pledge.

AXELROD: Well, I don’t think that that is the case. The president - at a time when we’re talking about very severe cuts and when we’re talking about the need to discipline spending, the symbolism of these earmarks is something that can’t be ignored. It’s not a huge part of the budget, but it is an expression of concern about how we spend money and the process by which we spend money.

So the president - and, you know, he’s been talking about this for two years. He’s been asking for reforms for two years. He fought for earmark reforms when he was in the Senate. He posted his earmarks so that - requests so people could see them.

So this is not a new issue for him. But I would, you know, suggest that if you listen to what has been said on the Republican side, in the House and among Republicans in the Senate, you know, their commitment is not to send a bill to the president with earmarks.

HUNT: Has Bill Daley, who’s only been in the White House now for, what, two or three weeks, has he put his imprimatur on the White House?

AXELROD: Bill’s doing a great job. You know him well, as I do. Bill is one of those - one of those great people you meet in public life who takes what he does seriously without taking himself too seriously. And he’s - it’s always difficult to come in two years in, and he’s put people at ease. There is a sense of comfort with him already. And he’s providing good, strong direction, but he’s doing it in a very collegial way. I think he’s going to be a tremendous chief of staff.

HUNT: David, there’s a very interesting New York Magazine piece which quotes you. It says, the president, in re-evaluating after Nov. 2, wants to be less insular, I think was the term they used. What are the prospects he’s going to play golf with John Boehner in the next couple of months?

AXELROD: I think they’re good. I think they’re good. Look, I think the president wants to have a relationship with Republicans and Democrats so that we can work together where we can.

He understands that there are - there wouldn’t be two parties if we didn’t have differences. So, you know, that’s not going to go away. But he’s always believed that, even if you disagree on most things, you ought to work together on the things you can. And you can’t do that unless you develop a relationship of trust and cooperation, and he’s willing to do that, even to the point that he’d play golf with a guy who has a much lower handicap than he does.

HUNT: David Axelrod, thank you for being with us. You’re returning to Chicago, but you’re still going to be deeply involved with the president.

AXELROD: Will do, yes.

HUNT: Safe travels out there.

AXELROD: Thanks, Al.

***END OF TRANSCRIPT***

THIS TRANSCRIPT MAY NOT BE 100% ACCURATE AND MAY CONTAIN MISSPELLINGS AND OTHER INACCURACIES. THIS TRANSCRIPT IS PROVIDED “AS IS,” WITHOUT EXPRESS OR IMPLIED WARRANTIES OF ANY KIND. BLOOMBERG RETAINS ALL RIGHTS TO THIS TRANSCRIPT AND PROVIDES IT SOLELY FOR YOUR PERSONAL, NON-COMMERCIAL USE. BLOOMBERG, ITS SUPPLIERS AND THIRD-PARTY AGENTS SHALL HAVE NO LIABILITY FOR ERRORS IN THIS TRANSCRIPT OR FOR LOST PROFITS, LOSSES OR DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THE FURNISHING, PERFORMANCE, OR USE OF SUCH TRANSCRIPT. NEITHER THE INFORMATION NOR ANY OPINION EXPRESSED IN THIS TRANSCRIPT CONSTITUTES A SOLICITATION OF THE PURCHASE OR SALE OF SECURITIES OR COMMODITIES. ANY OPINION EXPRESSED IN THE TRANSCRIPT DOES NOT NECESSARILY REFLECT THE VIEWS OF BLOOMBERG LP.

#<610771.1204164.2.1.69.30975.25># -0- Jan/28/2011 22:47 GMT

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