The Shadow Chancellor Ed Balls has criticised the Government's economic policies ahead of a major speech in which David Cameron will argue the country must "stand firm".
His statement reads: "David Cameron is totally out of touch and deeply complacent if he thinks Britain is on the right course.
"His failed policies have pushed us into recession and the Government is now set to borrow an extra £150 billion to pay for this economic failure.
"Plan A has failed in Britain, but it is also now failing across the Eurozone. David Cameron must recognise the austerity policies which are failing in Europe are the very same policies that have failed in Britain and which the British Government has been urging eurozone countries to stick with."
The PM has warned European leaders that the eurozone needed to take "decisive action" to ensure stability ahead of tomorrow's G8 meeting.
Downing Street have revealed that the David Cameron's conference call with other European leaders on the euro crisis was 'constructive.'
Earlier the PM looked to Germany for help to save Greece, but is there still time to save the stricken economy?