Cameron to Merkel: Speed up measures to tackle eurozone crisis

Berlin: British Prime Minister David Cameron has asked the German government to take speedy measures to restore global financial markets’ confidence in the euro zone’s ability to tackle its debt crisis and to support its ailing banking sector. “As far as the euro zone debt crisis is concerned, it is important that we need speedy and sustainable measures to counter the uncertainty in the financial markets with a firewall or bank capitalisation,” Cameron said here ahead of talks with Chancellor Angela Merkel. [caption id=“attachment_336866” align=“alignleft” width=“380” caption=“David Cameron has asked Angela Merkel for sustainable measures on the eurozone crisis”]  [/caption] European economies, whether in the euro zone or not, are all affected by the current instability in the single currency area and therefore “it is important to have credible plans” to overcome the debt crisis, he told a joint news conference with Merkel. It is also necessary to implement structural reforms so that growth and competitiveness can be restored in the entire EU, he said. Cameron denied any differences with Merkel over strict austerity measures championed by her as one of the remedies for the debt crisis. There is no conflict with Merkel over whether to give priority for growth or budgetary discipline, he said. “On one side, our economies need growth. On the other, we have to reduce our deficits. These two goals go hand in hand and we both are of the same opinion”. Merkel said Britain and Germany shared the view that solid budgets and economic growth are not contradictory and they are a prerequisite to create new jobs. She was convinced that the present difficulties facing the euro zone can be overcome and her government is determined to defend the stability of the single currency. Referring to the EU fiscal pact on strict budgetary discipline agreed by 25 of the 27 member-nations earlier this year, Merkel said the instruments to overcome the present difficulties have been established and they must be implemented. Even though Britain has not joined the euro and it opted to stay out of the fiscal pact, there is no risk of Britain being left out of the core EU group, she said. However, Britain should not cut itself from the rest of the EU and should “build upon what we have achieved so far without putting the internal market in question,” she said. Cameron reaffirmed the British position that it has no intention to join the single currency and it will not participate in the integration process of the EU. Britain also will not be part of a banking union and it will not take guarantees for the credits of Greece or other debt-laden EU partners. But Britain is aware that the unity of the euro group should be strengthened in order to be in a position to solve future problems, he said. Britain will make sure that its “interests in the internal market will be safeguarded, it is fair and everyone in Europe can benefit from the market”. Cameron said the fiscal pact “can be an important building block” of the euro group. But that alone will not be sufficient and the euro zone should consider taking other measures so that the common currency can function well. PTI