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When I was young, I delayed prosperity for my country.

donderdag, juni 07, 2012

Germany 'cannot act alone' - PM

Euro sculpture outside the ECBThe UK has not always seen eye to eye with eurozone members on how to deal with their problems

Action is needed now to stabilise the eurozone, No 10 has said - as David Cameron prepares to meet Angela Merkel to discuss Europe's financial woes.

Downing Street said the prime minister and US President Barack Obama had agreed on the need for an "immediate plan" in a phone call late on Tuesday.

Amid fears Spanish banks may need external help, Brussels has set out plans for a eurozone "banking union".

The UK has welcomed the move but said more needs to be done.

The European Commission said its proposed new regulatory framework would allow central authorities to take "decisive" action before a bank gets into trouble to prevent taxpayers having to pick up the tab for bailing it out later on.

'Need for urgency'

The UK said the plans were a "positive step in tackling the problem of 'too big to fail' in the banking sector".

The UK has said strengthening leading banks was one of a number of steps needed to restore market confidence in the eurozone.

David Cameron is pressing for a series of other measures including a larger bailout fund, euro bonds and structural reform within the European Union - which could lead to greater fiscal burden-sharing between the poorest and wealthiest countries.

"The eurozone has taken some steps to put its house in order, but more needs to be done," a No 10 spokeswoman said.

No 10 played down any suggestion of a rift with German Chancellor Angela Merkel about the way forward ahead of Thursday's meeting, saying "all leaders in the eurozone understand the need for urgency" to deal with current problems.

The prime minister spoke to the leaders of Canada and New Zealand on Wednesday as well as President Obama while Chancellor George Osborne spoke to his counterparts in G7 countries to "take stock" of the eurozone's position ahead of the G20 summit in Mexico later this month.

Meanwhile, the chairman of the influential Treasury select committee has called for the International Monetary Fund to play a greater role in resolving the eurozone's structural weaknesses and to lead contingency planning for Greece's possible exit from the single currency.

Tory MP Andrew Tyrie said the IMF should evaluate the costs and benefits of a smaller euro area since Germany was "unlikely to maintain the citizens of Greece in the style to which they are accustomed".

Source: http://www.bbc.co.uk/news/uk-politics-18343164#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa

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