As markets tumbled around the world, the Prime Minister issued his gravest warning about the global economic outlook, the Guardian reported.
“We are not quite staring down the barrel but the pattern is clear,” the Prime Minister told the Canadian parliament in Ottawa.
“The recovery out of the recession for the advanced economies will be difficult. Growth in Europe has stalled, growth in America has stalled. The effect of the Japanese earthquake, high oil and fuel prices is creating a drag on growth. But fundamentally we are still facing the aftermath of the world financial bust and economic collapse in 2008.”
He identified one of the main problems as the failure of eurozone leaders to agree a “lasting solution” to stabilise the single currency.
“The problems in the eurozone are now so big that they have begun to threaten the stability of the world economy,” Cameron said.
“Eurozone countries must act swiftly to resolve the crisis. They must implement what they have agreed and they must demonstrate they have the political will to do what is necessary to ensure the stability of the system.
“One way or another, they have to find a fundamental and lasting solution to the heart of the problem – the high level of indebtedness in many euro countries.”
The Prime Minister has also signed a letter with five other world leaders outside Europe calling on eurozone leaders to “act swiftly”, according to the Guardian.
Cameron wants action in two areas: greater political will behind the eurozone bailout mechanism, and moves towards greater fiscal integration in the eurozone, though not in the rest of the EU, in the medium to long term.
