THE GUARDIAN: Markets settle after good news from Greece and Italy, but Osborne describes situation in Europe as 'dangerous'
Britain's economy will be hit hard by further turmoil in the eurozone, David Cameron has warned, despite widespread relief on world financial markets as a new leader was installed in Greece and Italian politicians backed harsh austerity measures.
The prime minister insisted a "big question mark" remains over the future of the single currency, amid signs that the political impasse in Italy that sparked panic among investors may be close to a resolution. George Osborne, the chancellor, described events on the continent as "dangerous", adding: "There's no doubt that growth in Britain, jobs in Britain, have been hit by what's going on in the eurozone."
The fragile state of Britain's economy will come back into focus next week, with the latest jobless figures expected to show that public sector job cuts and the collapse of confidence among businesses have caused unemployment to rise rapidly.
The number of young people out of work is expected to hit 1 million, and with Osborne due to deliver his autumn statement on 29 November, pressure is increasing on the government to take urgent action to boost economic growth. The deputy prime minister, Nick Clegg, tells today's Times that Osbornes's autumn statement must deliver for the young, adding that it is "morally imperative" for the government to act. » | Heather Stewart and Allegra Stratton | Saturday, November 12, 2011
