Cameron: Time running out for eurozone
Share
Prime Minister David Cameron has warned European leaders that they have only a matter of weeks to avert an economic disaster.
In an interview with the FT, Cameron has urged leaders to take a “big bazooka” approach to resolving the crisis and has called on Germany and France to put aside their differences and tackle the uncertainty.
Cameron’s comments come as German chancellor Angela Merkel and France’s president Nicolas Sarkozy met in Berlin on Sunday, though the details of their plans were not explained. Sarkozy said both parties were ready to announce a comprehensive package before the summit of the G20 in Cannes next month.
Cameron has also called on Germany and other nations to accept “collective responsibility” for the euro membership and increase the eurozone’s 440m euro bailout fund to prevent the financial crisis spreading from Greece. He also wants the International Monetary Fund to be more active in “holding feet to the fire” by confronting eurozone leaders with strong terms and consequences.
Cameron said: “The situation with the world economy is very precarious.
“The eurozone is probably contributing more to that uncertainty and lack of confidence than anything else. You either make the eurozone work properly or you confront its potential failure.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (4)
Julian Stevens | 10 Oct 2011 10:02 am
And just which other nations are going to be either willing or able to accept “collective responsibility” for the euro membership and increase the eurozone’s 440m euro bailout fund? There aren't any. The only nations propping up the eurozone are France and Germany and, sooner or later, even their coffers will be exhausted, whereupon the mis-conceived eurozone will finally collapse. Why did Ireland join the eurozone? Not because of what it had to contribute but for what it could get out of it, which it's now mismanaged and squandered. Turkey wants to do the same. It's like the US banks having advanced billions of dollars worth of mortgage loans to people who were never going to be able to service those loans, let alone repay them. Crazy.
The eurozone will fail and all this talk about new "comprehensive packages" to avert that inevitable outcome are just futile attempts to stave off the inevitable.
Unsuitable or offensive? Report this comment
Neil | 10 Oct 2011 10:20 am
So it's all the fault of the Eurozone. Silly me, I thought the US had a small part to play in the recent credit crunch and financial crisis. Not to mention a few of our own banks.
Oh well, thankfully Big Dave's around to put me straight.
Who'd have thought a staunch anti-EU and anti-Euro politician would blame all their troubles on the Eurozone...
Unsuitable or offensive? Report this comment
huw | 10 Oct 2011 10:55 am
I realised last week when the BoE let rip with another round of QE, and an indication of more to come, that there won''t be a 'collapse' anytime soon. All that is going to occur is that the Dollar, the Euro and the Pound will be debased by endless QE for years ahead. The long term damage this will do will be enormous, but it will take time for the scale of the disaster to show.
As others have noted, the current financial world is effectively a huge debt based Ponzi scheme, and as we can't suck new debtors in so easily at the bottom, QE steps in to generate debt instead. One way or the other taxpayers are going to be in for a very rough time for decades to come.
Unsuitable or offensive? Report this comment
Nathan Stevens | 10 Oct 2011 8:59 pm
Yes I agree with comments made here unfortunately it is easy for David Cameron to preach to France and Germany what he does not really practice even in his own country, that is being charitable to the poorer in these times. But it could be perceived as a prudent comment putting UK interests above others in Europe and that element of his policies I support. selfishly
Unsuitable or offensive? Report this comment