Nick Clegg yesterday revealed that he was deeply concerned that Britain was on the brink of another financial crisis unless the U.K. played a leading role to help avert a financial crisis in the Eurozone. Nick Clegg reiterated his stance that Britain could not let the Eurozone to collapse and not expect severe consequences to the British economy. He told the Andrew Marr show: "I'm incredibly worried. I think the gravity of the uncertainty in the United States, which is basically a product of political gridlock, and the growing fiscal crisis, sovereign debt crisis in the Eurozone is immensely serious." He said that it was foolish to think that Britain was able to "wash our hands of it" because the country was not a member of the Eurozone.
Mr Clegg is the first high ranking British politician to publically say that the crisis in the Eurozone could spread to Britain and have a direct impact on British jobs. Figures on the British economy, due in ten days' time, are expected to show it is still flat lining. Asked by the BBC how worried he was about the prospect of another world crisis hitting Britain, the Deputy Prime Minister said: "I'm incredibly worried. I think the gravity of the uncertainty in the United States, which is basically a product of political gridlock, and the growing fiscal crisis, sovereign debt crisis in the Eurozone is immensely, immensely serious."
He continued: "This has a direct impact on British jobs, on the livelihoods of millions of people in this country. That's why I believe we should play an active role behind the scenes [...] to help Eurozone members make the reforms necessary to create a strong, prosperous Eurozone in the future."
Deputy Prime Minster Clegg's comments were followed up this morning by a report from leading economists warning that the U.K. is at a "critical juncture" because of the threat of contagion from the Eurozone crisis.
The IMF today have warned that Greece is on a knife edge because if it's over borrowed economy. Standard and Poor's is the latest ratings agency to issue a warning of a possible downgrade to the U.S. debt rating. The agency has said that there is a 'one in two' chance that the U.S. AAA rating - the gold standard of economic credibility - could be reduced if a deal on debt is not agreed soon.
Cynics have already hounded Nick Clegg, accusing the Deputy Prime Minster of trying to deflect attention away from the phone hacking scandal that has put serious pressure on the government especially Mr Cameron. However, Eurozone leaders will meet on Thursday in an emergency session and the U.K. must watch any developments very closely.