Summit on budget deficit called for by Greenspan

Economist Alan Greenspan, warning that huge federal budget deficits pose a long-term threat to the US economy, called for an economic summit between President Reagan and congressional leaders to solve the problem.

Speaking at a workshop session of the National Govenors Conference here, Mr. Greenspan, a sometime adviser to the President, parted company with the administration and said both tax increases and spending cuts were needed to bring the deficit under control.

In an earlier speech to the governors, Vice-President George Bush made it clear that tax increases were not the administration's answer to the deficit crisis.