Fresh warnings of economic dangers
George Osborne has stated his belief that it is politics, rather than economics, which is the biggest barrier to economic recovery.
The Guardian reports that the chancellor, along with other global finance ministers, is now calling for the eurozone to take further steps to reassure the markets by demonstrating commitment to “greater fiscal integration and governance arrangements”.
This news comes after the president of the World Bank criticised economic leadership in the US and Europe, and warned markets were entering a new danger zone as many market participants began to lose confidence in the economic leadership of key countries.
Robert Zoellick also accused the eurozone economies of dealing with the current economic problems “a day late” – a move which has caused major investor concerns. The problems in the US have shaken confidence in an economy, which many are usually used to playing a key economic role.
Osborne has now suggested that closer fiscal union could be the best solution to the crisis.