George Osborne reads riot act to EU finance ministers as sense of crisis grips €urozone

By Tim Montgomerie
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The Chancellor stopped short of calling for any fundamental changes to the €uro system but in heavy overnight briefing Mr Osborne's office made it clear that he is running out of patience with his fellow European finance ministers.

At a meeting with his counterparts George Osborne set out a five point action plan:

1. "Eurozone countries should now set out in detail how they plan to expand the scale of the financial tools at their disposal;
2. Carry out credible stress tests backed up with recapitalisation for the most vulnerable banks;
3. Involve the private sector to make Greece’s debt burden more sustainable;
4. Earn fiscal credibility through concrete action to reduce excessive deficits; and
5. Push forward structural reforms to boost growth."

He stated that the Britain was a model for the rest of the continent:

"The results of the action that Britain has taken are plain to see - despite having inherited one of the largest budget deficits our long-term interest rates are among the lowest in Europe. We are seen as a safe haven in the financial storm, but we are not immune to the instability on our doorstep."

Mr Osborne's intervention comes as a second poll in as many days shows how problems in the €urozone are turning public opinion against Europe. We noted yesterday how 66% of Tory voters now want Britain to leave the EU. A YouGov survey quoted on PoliticsHome finds that 50% of all voters now want out. Just 33% support staying in. Amongst those older voters who are likeliest to vote the opposition to EU membership is much higher. Most voters expect some €urozone nations to default on their debt. By 63% to 20% Britons think it’s likely that many nations will be able to repay their debts. More findings here.