EU leaders seek economic stability (From This is Hampshire)

EU leaders seek economic stability

7:58pm Friday 15th June 2012 in National News © Press Association 2013

European leaders have pledged to take the "necessary action" needed to secure global economic stability in talks with David Cameron.

The Prime Minister took part in a video conference call with key EU figures ahead of next week's G20 summit of leading world economies as the eurozone crisis continues to deepen. The Mexico meeting will see leaders attempt to forge a united stance rather than agree any detailed decisions.

But former Prime Minister Gordon Brown issued a stark warning that the Los Cabos conference is the "last chance" to sort out the eurozone crisis and claimed it was reaching a "day of reckoning".

Mr Cameron, German chancellor Angela Merkel, French president Francois Hollande, Italian PM Mario Monti, Spanish PM Mariano Rajoy, European Commission president Jose Manuel Barroso and European Council president Herman van Rompuy agreed the need for strong international co-operation on growth was a key priority.

Mr Barroso earlier said the euro currency and the "European project" are both irreversible. EU leaders would "stay the course" in the midst of the crisis, he insisted.

A Downing Street spokeswoman said: "The EU's priorities for the upcoming meeting include ensuring effective co-ordination at the global level for strong, sustainable and balanced growth and the implementation of the G20 commitments on financial market reform.

"Leaders agreed the need for countries to continue to take the necessary action to secure global economic stability and to support growth. These issues will be the focus of discussions at the G20 meeting, which immediately follows the Greek elections, and at the next European Council on 28-29 June."

Mr Brown claimed the prospect of a "chaotic" Greek eurozone exit is becoming more likely regardless of the outcome of crucial re-run elections in the country on Sunday.

France and Italy will follow Spain in needing a bailout as the eurozone crisis deepens, the former prime minister warned. In an article for news agency Reuters he claimed even German banks may need extra capital.

Ms Merkel, President Hollande and Mr Monti are expected to delay their travel to the Pacific resort until Monday in order to be in place to deal with the immediate aftermath of the Greek poll results, expected to be declared late on Sunday. The 13-hour flight to Mexico means that the leaders will be in the air as the markets respond to the results on Monday morning, though Mr Cameron will be in touch with London via satellite phone.