Cameron warns over eurozone crisis
Jun 19 2012
The crisis in the eurozone may rumble on "for some time", despite election results in Greece which look set to allow the country to remain in the single currency, David Cameron has warned.
Speaking at a G20 summit in Mexico dominated by the fallout from Sunday's elections, Mr Cameron urged the centre-right New Democracy party, which won the most seats, to move "decisively and swiftly" to form a new administration.
And the Prime Minister warned that "delay could be deadly". But he cautioned that even if the election results manage to get the eurozone past its latest crisis, further action is needed from the 17-nation bloc - and particularly Germany and the European Central Bank - to address the currency's fundamental problems.
The eurozone crisis topped his list of five key threats to global economic recovery, alongside protectionism, sovereign debt, failure to regulate banks and poor competitiveness. One senior diplomat said that the eurozone faces "a long, hard road that has got to be travelled" before its problems are over.
Mr Cameron said that G20 members would be putting "constructive pressure" on Germany at the two-day gathering to take decisive steps to resolve the long-running crisis.
But he acknowledged that Chancellor Angela Merkel faces political difficulties at home in delivering the economic changes - such as closer banking union and fiscal transfers to support weaker eurozone economies - which he believes are necessary to stabilise the single currency.
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