'Time is short' for euro debt solution: Cameron

10th October 2011, Comments 0 comments

British Prime Minister David Cameron warned that "time was short" for eurozone leaders bidding to solve the debt crisis and urged them to adopt a "bazooka" approach, in an interview published in Monday's Financial Times.

The Conservative party leader pushed Germany and France to patch up their differences and bring an end to the uncertainty which was having a "chilling effect" on the world's economy, during the interview with the British broadsheet.

German Chancellor Angela Merkel and French President Nicolas Sarkozy vowed Sunday a response to the crisis within weeks, insisting they were united on plans to shore up Europe's banks.

Without announcing concrete details, Sarkozy promised, after talks with Merkel in Berlin, "lasting, global and quick responses before the end of the month", amid rampant fears of a crippling credit crunch.

Cameron called on Merkel to accept the "collective responsibility" of the euro project and beef up the zone's 440-billion-euro ($589-billion) bailout fund, established to deal with the contagion caused by a possible Greek default.

The British leader did not accept that a Greek default was inevitable, but admitted that many of his ministers believed it was.

To deal with the "precarious" situation, Cameron told the business daily that only swift and drastic action would keep the eurozone's fate out of the hands of the market.

This "bazooka" approach was first championed by former US treasury secretary Hank Paulson.

US President Barack Obama has also warned that the European woes pose a threat to the global economy and called on European leaders to act fast to stem it.

World Bank chief Robert Zoellick accused Berlin of showing a "total lack" of leadership in an issue of German business weekly Wirtschaftswoche due to hit the stands on Monday.

© 2011 AFP

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