G8 summit: David Cameron warns eurozone to be prepared for life after Greece

Less than 24 hours after leaders of the G8 – the world’s eight biggest economies – pledged their support for the troubled Greek economy to stay in, Mr Cameron appeared to break ranks and issue a warning for the eurozone to prepare for the worst.

His comments came just after his Conservative justice secretary Ken Clarke, a former chancellor, said that the European banking system is “in tatters” and that the consequences could be felt in Britain.

With Greek elections looking set to see anti-austerity parties opposed to the bailout deal with EU countries elected in larger numbers, bookmakers have cut the odds on the country exiting from the currency.

Mr Cameron joined Nato leaders in Chicago, Illinois, where the focus was the shortage of money for governments to pay for defence.

However, Mr Cameron said Greek voters effectively faced an in-out choice when they go to the polls in next month’s re-run elections amid fear that a disorderly exit from the euro could trigger another global financial crash.

The Prime Minister denied Saturday’s G8 summit in the US had been a failure after it did not deliver a plan for resolving the Greek debt crisis.

“I don’t think it was a failure because I think it … crystallised the thinking of the eurozone leaders,” he said.