Cameron asks Merkel for sustainable measures on euro crisis
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"As
far as the euro zone debt crisis is concerned, it is important that we
need speedy and sustainable measures to counter the uncertainty in the
financial markets with a firewall or bank capitalisation," Cameron said
on Friday ahead of talks with Chancellor Angela Merkel.
European
economies, whether in the euro zone or not, are all affected by the
current instability in the single currency area and therefore "it is
important to have credible plans" to overcome the debt crisis, he told a
joint news conference with Merkel.
It
is also necessary to implement structural reforms so that growth and
competitiveness can be restored in the entire EU, he said.
Cameron
denied any differences with Merkel over strict austerity measures
championed by her as one of the remedies for the debt crisis. There is
no conflict with Merkel over whether to give priority for growth or
budgetary discipline, he said.
"On
one side, our economies need growth. On the other, we have to reduce
our deficits. These two goals go hand in hand and we both are of the
same opinion".
Merkel
said Britain and Germany shared the view that solid budgets and
economic growth are not contradictory and they are a prerequisite to
create new jobs.
“
She was convinced that the present difficulties facing the euro zone
can be overcome and her government is determined to defend the stability
of the single currency.”
Referring
to the EU fiscal pact on strict budgetary discipline agreed by 25 of
the 27 member-nations earlier this year, Merkel said the instruments to
overcome the present difficulties have been established and they must be
implemented.
Even
though Britain has not joined the euro and it opted to stay out of the
fiscal pact, there is no risk of Britain being left out of the core EU
group, she said.
However,
Britain should not cut itself from the rest of the EU and should "build
upon what we have achieved so far without putting the internal market
in question," she said.
Cameron
reaffirmed the British position that it has no intention to join the
single currency and it will not participate in the integration process
of the EU.
Britain
also will not be part of a banking union and it will not take
guarantees for the credits of Greece or other debt-laden EU partners.
But Britain is aware that the unity of the euro group should be
strengthened in order to be in a position to solve future problems, he
said.
Britain
will make sure that its "interests in the internal market will be
safeguarded, it is fair and everyone in Europe can benefit from the
market". Cameron said the fiscal pact "can be an important building
block" of the euro group.
However,
that alone will not be sufficient and the euro zone should consider
taking other measures so that the common currency can function well.
