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LONDON – British Prime Minister David Cameron on Thursday urged Europe tosort out its currency crisis, calling on the 17-country eurozone"to make-up or it is looking at a potential break-up." "Either Europe has a committed, stable, successful eurozone with aneffective firewall, well capitalized and regulated banks, a systemof fiscal burden sharing, and supportive monetary policy across theEurozone. Or we are in uncharted territory which carries huge risksfor everybody," Cameron said in a speech in Manchester. Cameron said that if Greece is forced out of the single currencyunion, the possible collapse of the eurozone poses huge risks tothe U.K. economy but he said Britain was prepared to weather thefallout. "Whichever path is chosen, I am prepared to do whatever isnecessary to protect this country and secure our economy andfinancial system," Cameron said. The Prime Minister added that the danger for the eurozone laid inits peripheral economies such as Portugal, Spain and Italy and thatthese "high deficit, low competitiveness countries" in the eurozoneneed to cut spending, increase revenues and undergo structuralreform. "We all need to address Europe's overall low productivity and lackof economic dynamism, which remains its Achilles heel," Cameronadded. "Most EU member states are becoming less competitive compared tothe rest of the world, not more." Cameron's office said several European leaders were scheduled tohold a video conference later Thursday to discuss plans to boostthe continent's meager economic growth. Cameron, French President Francois Hollande, German ChancellorAngela Merkel, Italian Premier Mario Monti, European CouncilPresident Herman van Rompuy and European Commission President JoseManuel Barroso were all joining the call, Cameron's office said,ahead of the Group of Eight summit which opens Friday in the UnitedStates. In a news conference on Wednesday, Bank of England Governor MervynKing warned there would be no trouble-free outcome to the eurocrisis, whether it stays together or fractures. "Whatever happens, there are major problems ahead; there are creditlosses to be realized, and however they choose a solution here thisis going to be a very difficult path to go through becausecountries like Germany and the Netherlands have yet to face up totheir rebalancing which will be required, as well as therebalancing of counties in the south." In its quarterly Inflation Report, the Bank of England warned thatthere was no way to quantify the most extreme possible outcomes inthe Eurozone. King said Britain was already was feeling the impactin the form of bank funding costs, asset prices, exchange rates andbusiness and household confidence. "What is so depressing about it is that this is a re-run of thedebates we had about the banking sector in 2007/08," King said "Back in 2008, the United States, United Kingdom did recapitalizethe banking system. It did grip the solvency problem. What we nowneed is action to grip the solvency problem in Europe. And it'sbeen two years — two and a half years now — in themaking, this crisis. I hope the action will be taken." Alistair Darling, who was in charge of Britain's Treasury in 2008,said the impact could be severe. "A Greek exit could start a fire that would spread all along theMediterranean as other countries would come under pressure. Therepercussions, particularly in the banking sector, could crippleEurope for years to come," Darling wrote in Thursday's edition ofThe Scotsman newspaper. "This is uncharted and highly risky territory," Darling added. The government's business minister, Vince Cable, cautioned againstpanic, saying there was no reason why the Greek crisis shouldspread to other countries. "We need to get the risks in perspective," Cable said in a BBCradio interview. "There clearly are risks to the U.K. Greece itself is a smallcountry, it's only 2 percent of the European economy. The risksarise if the crisis were spread to other weaker, countries insouthern Europe, but there is no reason why that should happen.". I am an expert from terminalblock-connectors.com, while we provides the quality product, such as Panel Mount Terminal Blocks , Spring Terminal Block, Spring Loaded Terminal Block,and more.
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