PM: Need decisive action on euro

The PM has warned European leaders the eurozone must take "decisive action to ensure financial stability and prevent contagion." Fitch ratings agency says all euro members face being downgraded if Greece's elections don't produce a stable government

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No 10: PM tells European leaders decisive action must be taken to ensure stability in the eurozone

A No 10 spokesperson has revealed what David Cameron said to the European Council president Herman Van Rompuy, German Chancellor Angela Merkel, the new French president Francois Hollande, the European Commission president Jose Manuel Barosso and the Italian PM Mario Monti in a video conference call:

The Prime Minister had a constructive discussion ahead of the G8 Summit in Camp David this weekend.

“He discussed with the others their priorities for G8; the Eurozone - including Greece, growth, and the importance of expanding trade relations between the US and the EU.

“On the Eurozone, the Prime Minister emphasised the importance of Greece and the Eurozone taking decisive action to ensure financial stability and prevent contagion.

He repeated what he had said in his speech earlier today; that there is a need for monetary action to stimulate growth; for structural reform to increase competitiveness in the EU; that the right governance arrangements had to be in place; and that countries throughout the Eurozone should take the necessary action to tackle unsustainable deficits.”

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European leaders to hold conference call

David Cameron will hold a conference call ahead of tomorrow's G8 meeting
David Cameron will hold a conference call ahead of tomorrow's G8 meeting Credit: Reuters

David Cameron will hold a video conference call with other European leaders this afternoon. The Prime Minister will talk with French President Francois Hollande, German Chancellor Angela Merkel and Italian Premier Mario Monti.

They will also be joined by the president of the European Council, Herman Rompuy, who suggested the discussion ahead of the G8 meeting starting tomorrow, and EU commission president Jose Manual Barroso.

Greek election runner-up: Europe's austerity measures will send us 'directly to hell'

The leader of Syriza, Greece’s left-wing political party that is opposed to the austerity measures, has warned his country would 'go to the Hell' if they remained in the euro.

Alexis Tsipras, made the comments in an interview on CNN's Amanpour.

He was responding to the German Chancellor ultimatum – seek economic reform and embraces austerity, or leave the single currency.

CBI blame Greece for lack of new investments

The Prime Minister is absolutely right that deficit reduction and growth are inextricably linked. By tackling the budget deficit the UK has won the confidence of international markets keeping our interestrates low, at this critical time. The greatest threat to the recovery remains the ongoing uncertainty in the Euro area, particularly in Greece, which is making businesses press the pause button on new investments, both at home and overseas.

– John Cridland, The Confederation of British Industry (CBI) Director-General

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Directors: 'Eurozone crisis is major threat to the economy'

The Eurozone crisis is a major threat to the British economy, and the Government isright to look at ways to armour us against the damage it may cause.

Sticking tothe path of deficit reduction is absolutely crucial, and beyond that we need tosee a drastic action to reduce the burdens of taxation and excessive regulationon business.

If the UK is to come out of this storm ahead of the pack, we needto be the most business friendly, competitive country in the world.

– Director General of the Institute of Directors Simon Walker

Osborne hits back at Ed Balls' economy criticism

George Osborne branded Ed Balls' comments regarding the Government's economic policy as "complete nonsense".

He said: "It seems to be that the shadow chancellor's central argument ... and the argument he puts in this motion is that the British economy is not as strong as the German economy, that's what we're all being asked to vote on tonight and you know what, he is absolutely right about that.

Chancellor George Osborne.
Chancellor George Osborne. Credit: Reuters

"The British economy is not as strong as the German economy, and I'll tell you why, because for the last decade in the good years, Germany fixed the roof when the sun was shining and he did not when he was in government."

Mr Osborne said Germany maintained its share of world exports, while Britain's share "almost halved".

He said: "Germany was selling more than £10 billion of goods to China a year, Britain was exporting one fifth of that, indeed we were exporting more to Ireland than to Brazil, India, China and Russia put together."

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