Royal jubilee and Olympics will ‘help get Britain back on track’

David Cameron admitted 2012 would be “difficult” as the economy struggles and household finances are squeezed but insisted the coalition “got” the problems and would “do more” to help people through them.

The Prime Minister said that although much of Europe was struggling, there were “huge opportunities” for UK businesses in other parts of the world.

And Mr Cameron promised to be “bold” when it came to dealing with public services and social issues – complaining that “too often our schools aren’t up to scratch, our hospitals aren’t always clean enough and our police don’t catch criminals”.

His message stood in stark contrast to that of other European leaders who used their New Year messages to warn of increased difficulties for the year ahead.

Mr Cameron said: “This will be the year Britain sees the world and the world sees Britain.

“It must be the year we go for it – the year the Coalition government I lead does everything it takes to get our country up to strength.

“The coming months will bring the global drama of the Olympics and the glory of the Diamond Jubilee.

“Cameras and TV channels around the planet will be recording these magnificent events. It gives us an extraordinary incentive to look outward, look onwards and to look our best: to feel pride in who we are and what – even in these trying times – we can achieve.”

The premier went on: “Of course I know that there will be many people watching this who are worried about what else the year might bring.

“There are fears about jobs and paying the bills. The search for work has become difficult, particularly for young people. And rising prices have hit household budgets.

“I get that. We are taking action on both fronts. I know how difficult it will be to get through this. But I also know that we will.”

Mr Cameron said the Government had “clear and strong plans” to bring down the deficit, which were giving “some protection from the worst of the debt storms now battering the eurozone”.

“We have gained security for now – and because of that, we must be bold, confident and decisive about building the future,” he added.

“I know much needs to change. We’ve got to do more too to bring our economy back to health. So we’ve set out big plans for the transformation of our infrastructure, starting now – with better roads and railways, superfast broadband and new homes.”

The Prime Minister’s upbeat message echoed comments from the Culture Secretary Jeremy Hunt, who said that the Government will ignore calls for an “austerity Olympics”.

Mr Hunt said hosting the Games during the worldwide slowdown was an “incredible stroke of luck” as it would be a “huge plus sign” for UK.

The optimism was not shared in Europe however, with German Chancellor Angela Merkel claiming 2012 “will no doubt be more difficult than 2011”.

Her French counterpart President Nicolas Sarkozy, who faces a re-election battle this year and has been trailing in polls, said: “I know that the lives of many of you, already tested by two difficult years, have been put to the test once more”.

Italian president Giorgio Napolitano, said people would have to make more sacrifices to avert “financial collapse” in the country – which is due to refinance billions of euros in debt this year.