David Cameron warned last night that the world is close to “staring down the barrel” of economic meltdown.
Referring to “the crisis” of Europe’s wobbling economies and a lack of political will to fix it collectively, he made an urgent call for action in a speech to the Canadian Parliament in Ottawa for strong and united international economic intervention to bolster shattered market confidence.
“The problems in the eurozone are now so big that they have begun to threaten the stability of the world economy,” he warned.
“Growth in Europe has stalled. Growth in America has stalled.”
Before another speech at the United Nations in New York, he said: “We cannot go on kicking the can down the road, we need decisive action, swift action to deal with this issue.” He warned that Britain and the rest of the world were not facing the traditional cycle of economic ups and down.
What we’re facing is the recovery from a debt crisis, not a recovery from a recession. You’ve got to deal with your debts – in banks, households, governments. You can’t spend your way out of a debt crisis,” he said.
On the same theme in Ottawa he said: “Eurozone countries must act swiftly to resolve the crisis. They must demonstrate they have the political will to do what is necessary to ensure the stability of the system."And one way or another they have to find a fundamental and lasting solution to the heart of the problem – the high level of indebtedness.”