The UK Prime Minister will urge European politicians to move towards fiscal and political union as the muddling through approach carries “huge risks for everyone”.
Cameron will speak to a business audience today but the FT has obtained some details of the speech.
He will say: “The eurozone is at a crossroads – it either has to make up or it is looking at a potential break-up.
“Either Europe has a committed, stable, successful eurozone with an effective firewall, well-capitalised and regulated banks, a system of fiscal burden sharing and supportive monetary policy across the eurozone or we are in uncharted territory which carries huge risks for everyone.”
His speech echoes comments made yesterday by Mervyn King, the governor of the Bank of England, who said the single currency area is “tearing itself apart with no obvious solution” and revealed the UK government and the FSA were preparing contingency plans for a break up.
“Kicking the can down the road is not the answer […] whatever happens, there are difficulties ahead. We are navigating through turbulent waters with the threat of a storm coming towards us,” King said.
