David Cameron warns of looming global financial crisis

Prime Minister David Cameron has warned of an impending global financial crisis, saying that “red warning lights are once again flashing on the dashboard of the global economy.”

Writing in the Guardian, as he represented the UK in the G20 Summit in Brisbane, Australia, Cameron highlighted the eurozone in particular as a cause for concern.

He said that “the eurozone is teetering on the brink of a possible third recession, with high unemployment, falling growth and the real risk of falling prices too” and is already affecting UK.

The backdrop of instability, Cameron said, was fuelled by ongoing conflicts in Ukraine and the Middle East, the Ebola crisis and stalling of trade talks.

Cameron warned Britain’s economic recovery posed a “real risk” from the wider problems in the global economy.

Despite the slowdown, the British economy still looks more dynamic than the eurozone, where growth is sluggish and deflation threatens.

According to the European Commission’s autumn economic forecast, output in Britain will grow by about 3.1% this year, higher than a previous prediction of 2.7%, then 2.7% in 2015 and 2.5% in 2016.

The PM also said: “Our long-term plan is backing business by scrapping red tape, cutting taxes, building world-class skills and supporting exports to emerging markets.

“Underpinning all of this is our radical programme of investment in infrastructure. Again this was a central theme at the G20 and Britain is proudly leading the way.

“In six months’ time, Britain will face a choice: the long-term plan that has seen it prosper, or the easy answers that would surely have seen it fail.

“By sticking to our long-term plan at home and standing up for Britain’s interests abroad, we will do everything possible to protect our economy.”