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Cameron demands "lasting solution" to euro crisis

by LLB Reporter
24th May 12 8:40 am

The eurozone needs a “lasting solution” to bring its sovereign debt crisis to an end, according to David Cameron.

The British prime minister, who attended his 18th EU summit on the eurozone crisis last night, told European leaders in Brussels that while austerity measures should not be ditched, policy priorities do need to be changed in order to generate growth.

During their meeting last night, EU leaders agreed to do all they can to ensure Greece remains in the eurozone. However, they warned that the country must stick to its tough austerity programme to receive further financial bailouts.

One EU official commented: “You could not expect any decisions that can resolve this crisis overnight. We have been holding talks on the key issues – jobs and growth – but we are not today saying much different from what we were saying at the G8 summit in America.”

Earlier, Cameron emphasised that Greece had to stick to its debt and deficit reduction commitments in return for bailouts – but other countries facing difficulties should be given more central support and longer deadlines to meet austerity goals.

The prime minister said every EU summit since he took office – 18 in all – had been about the crisis – regarding bailouts, new financial mechanisms, new eurozone economic rules and recently a new “fiscal pact”.

But now EU leaders had to address the “real issues” behind the euro crisis, he said.

He called for a range of growth-producing policies, with support for energy and transport and digital market strategies – all of which would deliver jobs and revitalise economies.

“There needs to be decisive action soon that delivers a lasting resolution to this crisis,” Cameron insisted.

The prime minister, criticised for dictating to the eurozone, justified his remarks by pointing out that the UK was directly affected by eurozone problems – six times more exposed, he said, than the US.

“It is right that we set out our views,” he said.

He warned that the rest of Europe needed to be ready for whatever verdict the Greek people delivered at the re-run election on June 17.

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