The Governor of the Bank of England warned that any recovery would be slow and that the crisis in the eurozone had cast a "black cloud of uncertainty" over businesses around the world.
"I think it's this black cloud of uncertainty which is hanging over British business as it is hanging over American business."
The European Central Bank's actions to support the currency had bought some breathing space, Sir Mervyn said in an interview with Channel 4 news.
"Now is the time that they have to decide exactly what kind of monetary union they want."
More top news
The former Manchester City forward has denied the allegation of gang rape and is expected to appeal.
The 14-year-old is one of the country's most talented trampolinists, but her skills extend far beyond just sport.
A man who spent nearly 46 years in prison for a crime he did not commit has told ITV News he is not "bitter" about what happened to him.