Prime Minister David Cameron has urged the world’s central banks to protect the global economy from the ongoing crisis in the eurozone.
In a speech at the G20 summit in Mexico, Cameron addressed business leaders from some of the world’s emerging and developed economies.
The summit is expected to be dominated by the eurozone crisis, as the economic woes of a number of European countries show no sign of improvement.
Despite not being in the eurozone, Britain is inextricably linked to the economies of Europe. The UK’s economy is unlikely to improve without improvements in the economies of the continent.
David Cameron has long called for more action from countries in the eurozone, and now wants more action from the world’s central banks.
“We cannot afford for central banks around the world to stand on the sidelines if we are to deliver the growth we need,” he said.
“It is becoming increasingly clear in the eurozone that the core, including the ECB (European Central Bank), must do more to support demand and share the burden of adjustment.”
David Cameron is attending the G20 summit with the Chancellor George Osborne, as well as a large delegation of business experts.
“The alternatives to action that creates a more coherent euro zone are either a perpetual stagnation from a euro zone crisis that is never resolved – or a break up … that would have financial consequences that would badly damage the world economy,” he added.
The eurozone took a step in the right direction recently, as Greece finally elected a political party. The conservative New Democracy party won a marginal victory at the weekend, and is trying to form a coalition government.
On a positive note for the world economy, New Democracy is pro-austerity and hopes to form a coalition of parties that are pro-Europe and pro-Euro.
David Cameron has already urged the New Democracy party to “get on with it” and form a coalition to avert any further complications.
“The outcome of the Greek election looks clear in terms of a commitment to stay in the eurozone and to accept the terms of the memorandum,” he said ahead of the G20 summit.
“If you are a Greek political party and want to stay in the eurozone and accept the consequences that follow you have got to get on with it and help form a government. A delay could be very dangerous,” he added.