Cameron call for urgent action over euro crisis

Prime Minister David Cameron has called on today’s G20 summit to show a sense of “urgency” over the eurozone crisis after Greece was told to make up its mind if it is to remain a member of the single currency.

Greece’s decision to delay a proposed 130bn euro bail-out pending the results of a referendum on the matter will dominate today’s summit as global markets remain unstable.

Mr Cameron, due to arrive in Cannes this morning, said more detail was needed on how the rest of Europe was to be protected from contagion from Greece’s problems.

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He also made it clear that Britain will not contribute to any eurozone bail-out fund for Greece, nor any IMF package specifically designed to shore up the single currency area.

At Prime Minister’s Questions yesterday, former Chancellor Alistair Darling urged Mr Cameron to use the G20 to persuade leaders of the world’s biggest economies of the need for urgency.

“It is not at all clear how on earth Greece is going to get out of its deficit even if the referendum passes,” said Mr Darling.

“European banks will need shoring up well before next summer and as for the new rescue fund, which may be needed sooner than we think, it doesn’t actually exist.”

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Mr Cameron said: “I think some progress was made at the European Council meeting a week ago when, for the first time, they did accept a proper write-down of Greece’s debt, which has to be part of the solution.

“We need also a proper recapitalisation of Europe’s banks, done to a credible test rather than the incredible tests that were there in months gone by, and the final element – which needs to have more detail added and more substance added – to make sure there is a proper firewall to stop contagion in the eurozone.”

French President Nicolas Sarkozy and German Chancellor Angela Merkel summoned Greek Prime Minister George Papandreou for emergency talks yesterday following his shock decision, which has sparked panic on global markets after it heightened fears of a global recession.

France’s Prime Minister, Francois Fillon, told her parliament: “Europe cannot be kept waiting for weeks for the outcome of the referendum.

“The Greeks must say quickly and without ambiguity whether they choose to keep their place in the eurozone or not.”