Eurozone's 'moment of truth' looming: British PM

10th November 2011, Comments 0 comments

The debt crisis in Italy could plunge the entire eurozone into danger and the "moment of truth" is approaching, British Prime Minister David Cameron said on Thursday.

Cameron also said London was preparing for "every eventuality" from the fallout.

"What is happening in Italy is a warning to any country, any government without a credible plan to deal with excessive debts," Cameron said at an Exporting for Growth conference in London.

"But there is another issue too. The future of the euro.

"Italy is the third largest country in the eurozone. Its current state is a clear and present danger to the eurozone and the moment of truth is approaching.

"If the leaders of the eurozone want to save their currency then they -- together with the institutions of the eurozone -- must act now. The longer the delay, the greater the danger."

Britain is one out of 10 European Union countries that does not have the euro currency but fears turbulence in the 17-member eurozone will heavily affect the kingdom.

"Here in Britain, outside the euro, we must prepare for every eventuality -- and that is exactly what we will do," Cameron said.

The crisis poses a threat to British trade, 40 percent of which is with eurozone countries.

Britain's trade-in-goods deficit ballooned to a record amount in September on the back of surging imports, official data out Wednesday showed.

The deficit soared to £9.8 billion ($15.7 billion, 11.5 billion euros) last month, compared with a revised shortfall of £8.6 billion in August.

© 2011 AFP

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