Osborne: We’ve got until November to end eurocrisis

Angela Merkel meets Nicolas Sarkozy in Berlin for talks earlier this summer, but European leaders have failed to calm the markets.
Angela Merkel meets Nicolas Sarkozy in Berlin for talks earlier this ummer, but European leaders have failed to calm the markets.s

By politics.co.uk staff

The world has until November to end the crisis hitting the eurozone or face the consequences, George Osborne has warned.

In a sign of the government's exasperation at the continued chaos on the continent, the chancellor said the Greek problem needed a firm solution by the time the G20 met in Cannes on November 3rd.

"If we come out of that meeting [in Cannes] with the eurozone crisis still unresolved going into the winter, going into Christmas, then I think that will be terrible not just for Britain, not just for Europe, but for the entire world economy," the chancellor said.

In a range of media appearances before his conference speech, Mr Osborne said a solution to the crisis would be the best possible news for the British economy.

"The single biggest boost to the British economy that could take place this autumn is nothing I can announce. It is the resolution of the Euro crisis," he said.

"That single thing would do more to boost the British economy than anything else in the world at the moment."

If the crisis was not fixed soon, the consequences would be "terrible" Mr Osborne added.

Eurozone finance ministers meet in Luxembourg today to agree to increase the bail-out fund and try to reach a lasting decision on Greece.

As the meeting took place, George Papandreou's government confirmed it would miss its deficit reduction targets for 2011 and 2012.

Greece's 2011 deficit is projected to be 8.5% of GDP, short of the 7.6% target set by the EU and IMF.

Share indexes in Europe all fell upon opening, with banking stocks among the worst performers.


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