British Prime minister expresses his fear about Euro Zone crisis as a major threat for global economy

British Prime Minister – Mr. David Cameron made his fears out about the imminent threat that is emerging due to Euro Zone crisis resulting in the stagnancy of European economies.  In his speech in a news conference that was attended by Norwegian Prime Minister Jens Stoltenberg’s at Oslo, he asserted that the European economies are becoming stagnant and on every other day are losing jobs, opportunities and wealth.  The British Prime Minister further cautioned that the Euro zone crisis is clearly the biggest threat to the world economy.

Mr. David Cameron further cautioned German Vice-Chancellor – Mrs. Angela Merkel against expecting to come up with a fix and saying that it is wrong and unfair to expect one leader to shoulder all the responsibilities. Mr. Cameron is due to meet the German Chancellor on Thursday for crisis talks on Euro zone for a contingency plan pertaining to Spain.

This meeting comes at a time when Spain requested for an £ 100 billion bailout package for its banks and admitting that it is unable to raise money in the international markets and is losing access to the credit markets due to high borrowing cost.  Meanwhile six German banks were downgraded of their credit ratings. The European Central Bank or ECB dropped another bombshell by saying that the euro zone money market is again becoming impaired.  A few days back the Organsation for Economic Co-operation and Development – OECD’S- chief economist Mr. Pier Carlo Padoan expressed fears that the crisis in the Euro zone remains the biggest downside risk facing the global outlook.

The finance ministers of the European Union are distressed by the Euro zone crisis, which in their view could derail the economy and are desirous of finding solutions to this crisis. Meanwhile, the Prime Minister of Spain- Mr. Mariano Rajoy rang alarm bells that his country is facing a severe economic crisis. Late on Tuesday night, British Prime Minister– Mr. David Cameron and U.S. President – Mr. Barak Obama held telephonic talks in order to agree to the need for an ‘immediate plan’ to try to stop the crisis.

As per the opinion of the British Prime Minister – Mr. David Cameron the single currency Euro- cannot hold for long unless and until the other richer nations of the Euro Zone especially, Germany is prepared to underwrite the debts of the struggling southern member states.

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