George Osborne: eurozone crisis killing UK recovery
Published: 9th Jun 2012 22:12:38
The UK's hopes of economic recovery are being "killed off" by the eurozone crisis, the chancellor has warned.
Writing in the Sunday Telegraph, George Osborne said European leaders faced a "moment of truth" which could determine the economic future for over a decade.
He added that British businesses were "being held back because of uncertainty about the future".
Labour's Ed Balls said Mr Osborne was making "desperate excuses" for the government's failure to deliver growth.
The newspaper article comes in the wake of an announcement that Spain will get up to 100bn euros ($125bn; £80bn) in loans from eurozone funds to shore up its struggling banks.
BBC deputy political editor James Landale says Mr Osborne has spoken before about the negative impact of the eurozone crisis but never in such stark language - or with such pessimism about the UK's future recovery.
Mr Osborne wrote that treating the "latest symptom" would not be enough to "cure the underlying conditions".
He added: "Our recovery - already facing powerful headwinds from high oil prices and the debt burden left behind by the boom years - is being killed off by the crisis on our doorstep."
The risks for us of a disorderly outcome are huge”
The chancellor continued: "The British government is clear that it is strongly in Britain's interests for our biggest export market to succeed; the risks for us of a disorderly outcome are huge."
He called for greater fiscal integration across the eurozone bloc and said a banking union was a "natural extension" of the single currency.
However, he emphasised that the UK would not be part of any such arrangement and that any further transfer of power from Westminster to Brussels would require a referendum.
Mr Balls said it was "deeply complacent and out of touch" to blame the eurozone for a "double-dip recession made in Downing Street".
The shadow chancellor added: "Despite the eurozone crisis, Germany, France and the euro area as a whole have so far avoided recession while Britain's recovery was choked off in the autumn of 2010."
At 19:39:42 in EnglandThe family of a man who died, despite seven 999 calls for an ambulance, said he was failed in his "moment of need".
At 19:38:42 in SportNetherlands keeper Michel Vorm believes Louis van Gaal would be the ideal choice as Manchester United manager.
At 19:32:11 in EnglandHeathrow Airport is gearing towards the opening of its new Terminal 2 by unveiling Europe's largest privately funded sculpture.
At 19:27:52 in EnglandThe death of a 10-year-old boy who was hit by a car as he crossed the road outside his house was accidental, an inquest has heard.
At 19:13:07 in PoliticsPrivate parking firms paid more than £6m to the DVLA for the names and addresses of drivers in the past year - an increase of 28%, figures suggest.
At 19:12:17 in EnglandPoppies have been planted as part of a social media campaign to mark the First World War in Jersey.
At 19:11:22 in WalesGriff Rhys Jones has withdrawn from becoming Cardiff University's new chancellor just two weeks after an embarrassing debacle which saw his appointment halted at the last minute.
At 19:04:14 in EnglandA theatre company is hoping to have set a new world record by performing an abridged version of Shakespeare's works at more than 37,000ft (11,278m).
At 18:56:33 in WorldThe Iron Curtain fell 25 years ago, but it seems that nobody told the deer.
At 18:54:46 in EnglandA council is expanding the size of graves to accommodate obese people - and could charge extra for larger people to be buried in them.
Harvard CitationBBC News, 2012. George Osborne: eurozone crisis killing UK recovery [Online] (Updated 9th Jun 2012)
Available at: http://www.ukwirednews.com/news/1433649/George-Osborne-eurozone-crisis-killing-UK-recovery [Accessed 23rd Apr 2014]
News In Other Categories
The cost of drugs is in the headlines following the decision by NHS watchdog NICE that a new cancer treatment should not be funded.
A home security company is creating 230 jobs by expanding its operations in the Republic of Ireland.
Private parking firms paid more than £6m to the DVLA for the names and addresses of drivers in the past year - an increase of 28%, figures suggest.
Portugal's chances of exiting its three-year bailout programme rose after the sale of 10-year government debt fell sharply to a record low 3.57%.