By Adam Cadle
David Cameron today outlined three major steps to ensure the success of a single currency and which will aid the battle against the "perilous economic times" that Europe is currently facing.
In a speech on the UK, European and global economy, Cameron said that countries in the periphery of the eurozone with high deficits "must confront their problems head on", "increase revenues" and "undergo structural reform to become competitive."
The Prime Minister stated that the European Central Bank (ECB) must help with this burden. In addition, he praised 'monetary activism' intiatives such as President Hollande's ideas for project bonds which will see governments adopting the riskiest stakes in asset classes such as infrastructure, therefore paving the way for private sector investors to invest more with less risk.
Secondly, Cameron stated that "the eurozone needs to put in place governance arrangements that create confidence for the future."
Finally, overall low productivity and "lack of economic dynamism" were emphasised as being Europe's main achilles heel, with Cameron stating that these issues must be addressed as most EU member states are becoming less competitive.