London: British Prime Minister David Cameron on Thursday urged Europe to sort out its currency crisis, calling on the 17-country eurozone "to make-up or it is looking at a potential break-up."
"Either Europe has a committed, stable, successful eurozone with an effective firewall, well capitalized and regulated banks, a system of fiscal burden sharing, and supportive monetary policy across the Eurozone. Or we are in uncharted territory which carries huge risks for everybody," Cameron said in a speech in Manchester.
Cameron said that if Greece is forced out of the single currency union, the possible collapse of the eurozone poses huge risks to the UK economy but he said Britain was prepared to weather the fallout.
"Whichever path is chosen, I am prepared to do whatever is necessary to protect this country and secure our economy and financial system," Cameron said.
The Prime Minister added that the danger for the eurozone laid in its peripheral economies such as Portugal, Spain and Italy and that these "high deficit, low competitiveness countries" in the eurozone need to cut spending, increase revenues and undergo structural reform.
"We all need to address Europe's overall low productivity and lack of economic dynamism, which remains its Achilles heel," Cameron added.
"Most EU member states are becoming less competitive compared to the rest of the world, not more."
Cameron's office said several European leaders were scheduled to hold a video conference later today to discuss plans to boost the continent's meager economic growth.
Cameron, French President Francois Hollande, German Chancellor Angela Merkel, Italian Premier Mario Monti, European Council President Herman van Rompuy and European Commission President Jose Manuel Barroso were all joining the call, Cameron's office said, ahead of the Group of Eight summit which opens tomorrow in the United States.
First Published: Friday, May 18, 2012, 00:34