Europe, like America, is "not cratering," and is not going to change the shape of the US recovery, he said.
However, he said there is a mismatch of economic and political sensibilities between European nations, which makes operating a common currency extremely tough, according to Welch.
He welcomed the decline in the currency, which has been overvalued for a while. "The euro could go below a buck," Welch predicted.
Welch also said the Obama administration has utterly mismanaged the oil spill in the Gulf of Mexico and has been "horrible" at crisis management.
"Here's the difference between a businessman and a politician: Businessmen focus on solutions. Politicians focus on 'who can we blame?'" he said. "We have to be managers right now, not politicians. No photo ops."
In his speech from the Oval Office on Tuesday, President Obama summoned Americans to a "national mission" to move away from oiltowards renewable energy, casting the disaster as a golden opportunity to create clean-energy jobs.
But Welch thinks that selling the push towards renewable energy as a "jobs package" is "crazy." The incident may have been a stark reminder of the hazards of oil production, but Welch believes that the world will be using fossil fuels in the near future.
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