Cameron defends euro bonds and opposes Tobin tax at Davos

By Sara Busquets

Date: Thursday 26 Jan 2012

David Cameron concluded his address at the Davos World Economic Forum, having taken the occasion to encourage investment in the United Kingdom due to the country's virtues in a tough economic context.

In order to guarantee the Eurozone's survival, Cameron said that three short-term actions are needed: greater financial integration between countries; joint debt issues; and a greater role from the European Central Bank.

He said that Europe needs "radical, difficult" measures if the euro is to survive and that regulation must be adjusted to boost growth and stop job destruction.

For these reasons, Cameron called for more commitments at the corporate level in order to offset the lack of competitiveness in the Eurozone. He favoured euro bonds and opposed the Tobin tax, assuring that it could cost a total of 500,000 jobs.

Cameron said that the UK was in the best of both worlds, inside the European Union but not the Eurozone.

Gideon Rachman, the chief foreign affairs commentator for Financial Times said, “David Cameron’s speech, which just finished, contained an implied rebuke to Germany on the euro". He said: 'This is a problem of trade deficits, not just budget deficits.'"

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