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Global economy facing danger due to eurozone crisis: Cameron

Last Updated: Tuesday, October 4, 2011 - 22:18

London: The world economy is at "a moment of danger" due to the spiraling eurozone crisis, British Prime Minister David Cameron warned Tuesday.
As European Union finance ministers meet in Luxembourg to discuss the eurozone crisis Cameron said: "I think it is a moment of danger."
"I think there are some very serious clouds on the horizon, chief amongst them is the problems in the eurozone where the French economy, the German economy have both stalled, and that is a real problem for the British economy," he told the BBC.
He also said it was "absolutely vital" to stabilise the euro.
The financial leaders of the 17-country eurozone were under strong pressure to provide solutions to the currency union's worsening debt crisis, after markets around the world plunged on Monday.
Cameron said said safeguards were needed to protect UK interests if eurozone states begin closer integration.
"I think what we've got to do is line up the problems. Dealing with the eurozone, that's absolutely vital, then we've got to the look at the British economy and say look we've got a deficit reduction plan, that's good, that keeps our interest rates low, but we need more on the growth front."
As the eurozone economic crisis shows no sign of abating, some of its 17 members have been talking about greater fiscal union to bolster the single currency in future and support weaker members.
The British Prime Minister said that while it was "logical" for countries using the single currency to move closer to a single economic policy, the UK and nine other EU states outside the eurozone would need "certain safeguards" to protect the single market.
"This is not some naive view that they go off on their way and we are intensely relaxed about it. There are safeguards we need and the Liberal Democrats completely agree with that," he said.
Cameron is also facing calls from many of his MPs for a significant shift to the UK's relationship with Europe. Some want the UK to claw back powers from the EU while others are seeking a referendum on the UK's membership.
Deputy Prime Minister Nick Clegg, whose Liberal Democrats are the most pro-European of the three biggest UK parties, has said the eurozone crisis should not be used as a justification to radically alter the UK's relationship with the European Union.
But Clegg has warned that allowing eurozone states to act against the interests of other EU members would create a "divisive and weaker" Europe.


First Published: Tuesday, October 4, 2011 - 22:18
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