David Cameron has announced that the global economy is now in a “moment of danger” due to the crisis in the eurozone. The euro is necessary to be stabilized in order for the economic recovery to continue. Afterwards, the UK must stimulate growth in order to move the economy forward. In addition, with closer integration from the eurozone, the UK will need protection in the form of safeguards.
Stalling Growth Across Europe
Mr. Cameron cited the problems in the eurozone and the French and German economies stalling, creating issues for the UK. He proposed that the problems are lined up and counted in order to look at what steps to take. He then said in terms of the British economy that the UK would have to stimulate growth in addition the stringing deficit reduction plan the country already has.
He also believed that credit easing would help, making a difference to small businesses in the UK and boosting growth and support. However, the 17 members of the eurozone have been in discussions while the crisis continues, with a stronger euro coming out of greater fiscal union and help for those members who are weaker.
While the Prime Minister said that countries using the same currency should move closer to a single policy, he called for “safeguards” to protect markets of countries outside the euro but in the EU, such as the UK and nine other members. He also said that the Liberal Democrats agreed with that.
The EU Referendum
Some MPs are calling for a referendum on the UK’s membership in the EU, saying that EU regulations and EU problems impact the economy and laws in the UK too much to remain in place. The Prime Minister commented on this, saying, “We mustn’t get ahead of ourselves.” He advocated waiting on this subject until the current issues were dealt with, focusing solely on the economy.
Deputy Prime Minister, Nick Clegg, said that the eurozone crisis is not a justification for altering the relationship between the UK and the European Union, and advocated waiting as well, and probably not acting as strongly. However, he did warn that allowing some members to act against other members’ interests would divide the continent, creating weakness. Mr. Cameron said the choice was more complicated than staying in or pulling out of the EU.