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.
"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."
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?