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David Cameron urges 'decisive steps' on eurozone crisis

Tom Lawrence
Monday 10 October 2011 02:39 EDT
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David Cameron has called on Europe's leaders to take "decisive steps" to solve the financial crisis that is sweeping through the eurozone and putting the world economy in a "precarious" situation.

The Prime Minister also told member countries of the Euro they had a "collective responsibility" to avert economic disaster.

"The situation with the world economy is very precarious," he told The Financial Times.

"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."

During last week's Conservative Party conference Mr Cameron warned that the world economy was at a "moment of danger" and has been pushing for European leaders to take decisive action along with Chancellor George Osborne.

"I think we need to push, but in the end it is their currency, it is their issue - they have to take the decisive steps," said the Prime Minister.

"I don't underestimate the difficulties. But if you're in the Euro you have accepted some collective responsibility."

Mr Cameron also called on France and Germany to bury their differences over how to recapitalise Europe's banks.

The two countries, who together represent about half of the 17-nation currency zone's economic output, have so far disagreed on the course of action to take.

France has indicated its desire to immediately call the eurozone's newly strengthened 440 billion euro (£378 billion) bailout fund into action, while Germany has insisted the fund should be used as a last resort.

However, following a summit in Berlin over the weekend, Angela Merkel, the German chancellor, and France's President Nicolas Sarkozy yesterday announced they had agreed a plan to strengthen the shaky banking sector.

Merkel said the European neighbours "are determined to do the necessary to ensure the recapitalisation of Europe's banks" and would announce details of the package before the G20 summit in Cannes, France, next month.

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