In a speech at the Institute for Public Policy Research yesterday Clegg said the banking crisis could breed conflict and instability and push democracies into narrow nationalism.
He said: “In our world, economic strength is power. We do not yet know, when the dust settles from this crisis, where the power will lie. The financial collapse we are caught in may prove to be an economic 9/11.
“9/11 was a security crisis, with security implications. This is an economic crisis, but its economic and social security implications are potentially no less profound.”
Clegg welcomed the Government’s £37bn bail-out plan, and called for a “sea change” in the financial services industry bonus culture and for European leaders “step up to the plate”.
He added: “This crisis has proved that in our globalised world chains of cause and effect have no regard for territorial integrity.”