Fears for the UK economy grow in midst of Greek crisis

Prime Minister David Cameron will deliver a speech in Manchester today. Photo: Reuters

Yesterday the Prime Minister announced that the Eurozonehad to make-up or face a potential break up. His words seemed dramatic but today at a speech to business leaders inManchester, he's expected to repeat the sentiment. He'll say the Eurozone is at a crossroads.

Fears are growing that the economic crisis in Greece could spread to other parts of Europe. Credit: Reuters

It shows just how nervous the Government is that the crisis in Greece and the threat to the Eurozone could spread - affecting the UK too.

Britain's already in recession and yesterday the Governor of the Bank of England, Mervyn King, warned that what's happening in the Eurozone is threatening the UK economy and banking sector. The Eurozone is still Britain's biggest trading partner.

Governor of the Bank of England Mervyn King. Credit: Press Association

The problem is that David Cameron's on the sidelines looking in.

The UK is outside the single currency, has refused to pay towards an EU bailout fund and has little power to do anything but watch.

He knows though that he has to be seen to be doing something, even if that just means spelling out the fears of what happens if the Eurozone splits up. It will hurt.

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