Angela Merkel and Nicolas Sarkozy hammered out a deal at the weekend
10 October 2011 Last updated at 05:43
Europe’s leaders must take “decisive steps” to solve the financial crisis sweeping through the eurozone, David Cameron has said.
The prime minister said it was putting the world economy in a “precarious” situation and eurozone leaders had a “collective responsibility”.
The eurozone had to be made to work or its “possible failure” confronted.
Germany’s and France’s leaders met on Sunday and proposed “important changes”.
German chancellor Angela Merkel said details of the Franco-German package would be announced before the G20 summit in Cannes next month but she said France and Germany “are determined to do the necessary to ensure the recapitalisation of Europe’s banks”.
Meanwhile, France, Belgium and Luxembourg have approved a plan to secure the future of the troubled bank Dexia, following fears it could go bankrupt.
Dexia, which is jointly owned by France and Belgium, has significant exposure to Greek debts.
Mr Cameron told the Financial Times on Monday: “The situation with the world economy is very precarious.”
He added: “The eurozone is probably contributing more to that uncertainty and lack of confidence than anything else. You either make the eurozone work properly or you confront its potential failure.”
During last week’s Conservative Party conference Mr Cameron warned the world economy was at a “moment of danger” and he has been pushing for European leaders to take decisive action.
“We need to push, but in the end it is their currency, it is their issue – they have to take the decisive steps,” he told the FT.