- Chancellor calls for greater fiscal union in U-turn on traditional Tory policy
- Crunch talks in Brussels could lead to death of euro if there's no agreement
- Failure to stop Greek debt default may also cause 'European Black Friday'
- Osborne calls for single eurozone bond, with UK outside 'two-speed' Europe
- He says debt crisis could lead Britain into recession as serious as 2008
- Nicolas Sarkozy makes 'pact' with Angela Merkel in bid to gain German help
- Setback for Treasury as Britain borrows £400million than expected in June
Last updated at 10:21 PM on 21st July 2011
Call for action: George Osborne, pictured at Downing Street, said EU leaders must find a solution to the crisis. The FTSE, shown below below via a live monitor, initially dipped in response to fears that no deal will be reached before climbing up amid hope that the French and Germans would take action
George Osborne urged European leaders to 'get a grip' when they meet in Brussels today in a bid to resolve the debt crisis and save the euro.
The Chancellor of the Exchequer warned that if action was not taken, 'we see the potential for a set of economic events that could be as damaging as 2008' and that Britain would not be spared.
Also, in a dramatic move away from traditional Tory reticence over a more centralised Europe, Mr Osborne called for greater fiscal union among eurozone countries.
He insisted Britain should remain outside the euro, but said the 'remorseless logic' of the single currency meant issuing a single bond for those 17 member states 'worthy of serious consideration.'
The central problem facing the the currency bloc is that the most indebted nations, principally Greece, are approaching a stage where they cannot service debts taken out through the issuing of separate sovereign bonds.
The interest payments that markets demand in from these weaker economies for these loans has been rising.
Read more: http://www.dailymail.co.uk/news/article-2016775/Brussels-summit-Last-ditch-talks-save-euro-amid-debt-crisis.html#ixzz1SndwY5Wn
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