PM urges 'swift' Greece resolution (From Hereford Times)

PM urges 'swift' Greece resolution

7:19pm Monday 18th June 2012 in National News © Press Association 2013

Prime Minister David Cameron has called for Greece to move "decisively and swiftly" to the formation of a new government, warning that "delay could be deadly".

Mr Cameron was speaking at a G20 summit in Mexico which was dominated by the urgent need for a resolution to the crisis in the eurozone.

The Prime Minister said that, by backing the centre-right New Democracy party in Sunday's elections, the Greek people had "made their choice to stay in the euro" and should now form a government prepared to deliver on promises made in return for multibillion-euro bailouts.

But he also called on the other eurozone countries - and particularly Germany and the European Central Bank - to take "bold steps" towards the fiscal and banking union which he believes are necessary to solve the underlying problems with the single currency.

"The Greek people have now made their choice to stay in the euro, to accept the consequences of what that involves," said Mr Cameron. "Those parties that believe that need to get into government, need to deliver that.

"Delay is always dangerous in these situations. It is in our interests in Britain that these issues are resolved decisively and swiftly and that is what we are urging people to do today."

German Chancellor Angela Merkel's spokesman said she regards the Greek election results as "good news for the euro, for the eurozone and for Europe".

But Ms Merkel indicated that she is not willing to countenance any relaxation in the demands placed on Athens for austerity measures in return for its bailout.

"The important thing is that the new government sticks with the commitments that have been made," she told reporters at the summit in the Pacific resort of Los Cabos. "There can be no loosening on the reform steps."

Germany is coming under intense pressure at Los Cabos to use its financial clout to underwrite a plan to stabilise the single currency.