And David Cameron warned that the UK is not impervious to the effects of the euro’s plight, despite continuing to trade in sterling.
The EU is the biggest trading partner of Britain and problems within the eurozone have already had an impact on the UK.
However, the Prime Minister said that a disorganised breakdown of the single currency could be catastrophic for the UK and could, ultimately, result in years of financial ruin.
The UK has already been singled out for criticism by new French President, Francois Hollande, for not being fully integrated into the union and for retaining sterling. David Cameron admitted his latest comments may be received with some hostility from nations inside the euro, but insisted he had a right to express a view because Britain was suffering as a result of their actions.
The British Prime Minister called for the barriers to international free trade to be swept aside, in a bid to stimulate the global economy.
He added that Europe had to decide whether it wanted to continue with the euro and, if so, needed to create a ‘committed, stable successful eurozone,’ which also featured a properly regulated banking system, as well as a ‘fiscal burden sharing and supportive monetary policy.’ Mr Cameron said failing to achieve this left everyone in ‘unchartered territory,’ which carries ‘huge risks.’
But the British Prime Minister warned Europe that whichever route they ultimately chose, he would do ‘whatever necessary’ to secure the UK economy and protect the financial system. He ruled out any further spending and insisted the austerity measures would continue to be implemented as planned.
If you’re struggling with repaying your debts, speak to us about how a Debt Management Plan could help you get back in control of your finances.