With conflicts surrounding the eurozone crisis and many wary that the eurozone may split up during the next couple months, Prime Minister David Cameron has recently warned that a very negative outcome would be likely for the UK in such a situation.
In a recent interview with BBC, Cameron stated that the eurozone crisis is not just a threat to the sovereignty and existence of the eurozone itself, it is also a threat to the future of the British and world economies. With approximately 40% of UK exports going to the eurozone, Cameron believes it would be impossible to shield the UK’s economy from an economic crisis in the eurozone.
As a result, the Prime Minister believes that the best course of action would be to continue supporting its partners in the International Monetary Fund (IMF) and other European countries. In order to deal with the current crisis Cameron believes that eurozone leaders need to focus on strengthening financial mechanisms, involve the IMF more frequently in their decision-making, and develop a coherent plan to deal with rising sovereign debt levels.
Britain’s prime minister also believes that the highest priority on Europe’s agenda should be strengthening banks, and taking action to defend themselves from dependency on other financial sectors, such as those within the eurozone. With recent talks about a single tax system being imposed across Europe, Cameron has stated that the aforementioned measures need to be taken before any type of collective economic change can take place.
The eurozone debt crisis has been blamed for the recent fall in European stock markets, and has contributed greatly to the UK’s main share index (FTSE 100) recording its largest quarterly fall since 2002. While the future of the UK economy certainly depends on the outcome of the current eurozone crisis, Britain is fortunate enough to have escaped the problems that were countries like Greece are currently facing by imposing strict austerity measures during the last year.
