Leader: Crisis in eurozone would be blow for Britain too

INITIAL signs emerging from the European summit being held to thrash out a solution for the eurozone currency crisis are promising. It appears that national leaders have accepted that Greece will have to be allowed to default on the payments it has to make on its crippling national debt.

But there is still much to be done. In the short-term, structures and funds have to be put in place, firstly to try to prevent the sovereign debt contagion from spreading to Portugal and Ireland, possibly even Spain and Italy, and secondly to staunch any haemorrhage if the debt crisis does spread.

Again, the prospects for that look promising as it appears that European leaders have been discussing long-term treaty changes to eurozone rules.

David Cameron, the Prime Minister, was quick to say this would not affect Britain, no doubt because any hint of increased British liability would bolster eurosceptic Conservatives forcing today’s Commons vote on a referendum to leave the EU.

This is asideshow. A European currency crisis causing recession would deal Britain the same economic blow. But Mr Cameron needs to make the case for Britain to be in the EU, pushing for resolution and reform.