3 Oct 2011

EZ break-up bad for Britain - Cameron

9:09 am on 3 October 2011

Prime Minister David Cameron says it would be "very bad" for Britain if the eurozone was to break up.

He told the BBC on Sunday that the debt crisis in the eurozone was ''a threat not just to itself, but also a threat to the UK economy, and a threat to the world economy''.

He reiterated that eurozone leaders had to take quick and decisive action.

As 40% of British exports went to the eurozone, Mr Cameron said Britain could not shield itself from the problem.

The prime minister said the government had "a very clear view" of what needed to be done.

Eurozone leaders had to strengthen the region's financial mechanisms, ensure the greater involvement of the International Monetary Fund and deal decisively with the high levels of sovereign debt.

Mr Cameron added:

''Action needs to be taken in the next coming weeks to strengthen Europe's banks, to build the defences that the eurozone has, to deal with the problems of debts decisively.''

He said these emergency measures were needed before any long-term plans of more economic coordination across the eurozone were introduced, such as a single tax system.