Osborne calls for ‘comprehensive solution’ to eurozone crisis

Chancellor warns debt crisis is a ‘real danger’ to all of Europe as he arrives in Brussels ahead of EU leaders’ summit The eurozone debt crisis is a “real danger” to all of Europe, including the UK, the chancellor, George Osborne, has warned. Arriving for talks in Brussels ahead of a summit of all 27 EU leaders on Sunday, Osborne said it was “critical” and “in Britain’s national interest” that the crisis was resolved. Joining EU finance ministers for talks ahead of the summit, the chancellor said a comprehensive solution to the economic crisis would be the biggest boost for the British economy this autumn. He said: “What we’re going to be arguing for at this meeting is a comprehensive solution to this crisis. We’ve had enough of short-term measures, sticking plaster that just gets us through the next few weeks. “The crisis of the eurozone is a real danger to all of Europe’s economies, including Britain’s. “We need to address the root causes of the problem with a lasting solution that will help all of Europe’s economies.” The finance ministers are assessing the risk of “contagion” from Greece to other bigger European economies, including Italy. They are also finalising plans for a further recapitalisation of banks to protect them against future economic shocks. David Cameron is to attend part of Sunday’s European council summit, but with France and Germany at loggerheads, key decisions have been postponed until Wednesday’s gathering. The prime minister is due to fly to a Commonwealth summit in Perth next Wednesday when the 17 eurozone leaders meet to agree a deal to save Greece from default, strengthen European banks and construct a multibillion-euro fund to protect the euro from future debt crises. Ed Miliband has attacked Cameron for not seeking a place at Wednesday’s meeting , accusing him of an abdication of responsibility. The Labour leader said the prime minister should be “banging on the door to maintain British influence” over the future shape of Europe and said Cameron should ignore his “barking” Tory eurosceptics, who have been urging the prime minister to keep his distance. The foreign secretary, William Hague, advised Conservative MPs on Saturday against voting for a referendum on Britain’s future in the EU, warning it could damage the UK’s economic recovery and undermine attempts to tackle the eurozone crisis. Cameron faces potentially the most serious rebellion of his premiership on Monday in a vote on a backbench debate about Britain’s membership of the EU. At least 61 Conservative MPs have signed a motion calling for a referendum on whether the UK should remain in the EU, leave or renegotiate its membership, and some predict the total number of rebels could top 85. In an article for the Daily Telegraph on Saturday, Hague writes: “As a Conservative, I want to bring powers back from Europe, as we set out in our election manifesto. But he said a referendum, especially at this time of profound economic uncertainty, is not the answer. “Nothing would do more to help our economic recovery than a resolution of the eurozone’s difficulties, while its disorderly break-up would have a very serious impact on our economy.” The key to a successful deal on the eurozone debt crisis could be a private meeting between the German chancellor, Angela Merkel, and the French president, Nicolas Sarkozy, in Brussels on Saturday. They have clashed recently over the details of shoring up the euro and persuading jittery financial markets that the single currency is solid. Some ministers, including Osborne, have set a G20 summit in Cannes in less than a fortnight as the ultimate deadline for resolving the eurozone’s sovereign debt crisis. America and China have urged EU leaders to resolve the debt crisis and prevent the world sliding into another slump. European debt crisis Economic policy George Osborne European banks Euro Currencies Euro European Union Economics David Batty guardian.co.uk

Posted by on October 22, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.