Alistair Darling calls for ‘co-ordinated and swift’ action to save the eurozone

Former chancellor of the Exchequer Alistair Darling told a conference in Aberdeen yesterday that co-ordinated and swift action needed to be taken to tackle the crisis in the eurozone.

“The eurozone is a black cloud hanging over the global economy,” he said, outlining three key issues that demanded action. “Austerity alone will not work so there must also be a credible plan for growth.

“The banking system across Europe needs to be supported to instil confidence.

“Finally, the settlement for Greece has to be re-examined, as a solution leaving a country more indebted and worse off cannot work. The alternative of a Greece exit would result in significant contagion and should be ruled out.”

He said: “The UK also faces the challenge of reducing its debt burden at the same time as fostering growth which could be done for example through infrastructure projects. Quantitative easing worked initially but now money does not seem to be flowing down to businesses and into the economy.”

Darling was addressing 200 international delegates attending the biannual Aberdeen Asset Management (AAM) UK Investment Conference at Ardoe House Hotel.

The event was the last in a series of three international investment conferences Aberdeen has hosted this year, with the first two taking place in Singapore and New York.

Martin Gilbert, AAM’s chief executive, said the investment climate remained upbeat in spite of global gloom. “It is about identifying good companies and sticking with them,” he said.