PM: Leaders haven't done enough to resolve eurozone crisis

World leaders "still haven't done enough" to resolve the crisis in the eurozone, David Cameron has warned.

Speaking to reporters at the Nato summit in Chicago this afternoon, the Prime Minister defended Britain's involvement in the ongoing discussions, saying it was "more dangerous to stay silent" than to speak out to address the eurozone's problems.

"We need these issues to be resolved," Mr Cameron said.

"While I would commend what has happened in the eurozone in terms many of the steps they have taken to make their economies more competitive, to address some of the problems...the truth is that we still haven't done enough to decisively resolve the crisis.

"I judge that it would be more dangerous to stay silent and to say there's nothing we can do about this, there's no contribution we can make, because these issues have to be resolved, and in my view the more swiftly and effectively and comprehensively they can be resolved, the faster the eurozone will be able to return to growth."

The statement follows earlier comments from Downing Street that the Greek elections could be seen as a referendum on the country's membership of the European Union.

Following reports that Mr Cameron believes Greek people will be voting not just on a Government but on whether the country remains in the eurozone, a Number 10 spokeswoman said the matter was one for the Greek people.

But when asked whether a vote against austerity measures would mean a vote against meeting the country's commitments within the single currency, the spokeswoman said: "That's clearly a matter for the Greek people but that's an interpretation."

Both of the parties likely to do well in the elections back continued Greek membership of the single currency, but eurozone leaders say a result that led to Greece renegotiating a deal to bail out its debts to foreign banks might lead to the country leaving the single currency area.

The Deputy Prime Minister Nick Clegg also warned the crisis could "fuel extremism", warning that it could make the debate about EU membership look "like a small side show".

Labour has criticised Mr Cameron for siding with Germany, rather than France or US, as the eurozone crisis deepens.

Shadow Chancellor Ed Balls said the Prime Minister had been "all over the place" on the eurozone crisis, accusing him of having a multitude of different positions.

Speaking to BBC Radio 4, he added: "I’m afraid the problem is that David Cameron for the last two years has been supporting the German position which is now an increasingly isolated position, a very different position from the Obama-Hollande view that we need a more balanced plan on austerity, medium-term tough decision, but a plan now on jobs and growth.

"Unless there’s a change in Germany we aren’t going to see this crisis resolve and I don’t think David Cameron’s posturing today helps at all, I just think it makes things worse."