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Obama, Cameron urge eurozone plan

US President Barack Obama and British Prime Minister David Cameron agreed on the need for an ‘immediate plan’ to resolve the eurozone crisis in telephone talks, Downing Street said on Wednesday.

The call was in the run-up to the G20 summit in Mexico later this month, where leaders of the world's 20 largest economies will try to chart a way out of the global economic crisis.

In a conversation late on  Tuesday, Cameron and Obama ‘agreed on the need for an immediate plan to tackle the crisis and to restore market confidence, as well as a longer-term strategy to secure a strong single currency’, said a spokeswoman for the prime minister's Downing Street office.

Cameron had been making clear for some time that the eurozone countries needed to take ‘decisive action’ to bolster their currency, she added.

He believes this should involve creating an effective 'firewall' to prevent contagion spreading; ensuring banks are well capitalised; developing a system of fiscal burden-sharing; and enacting a supportive monetary policy across the eurozone.

Cameron is due to visit Berlin on Thursday, where he is likely to urge German Chancellor Angela Merkel to push for tighter fiscal governance in the eurozone.

A new plan set out by European Union markets commissioner Michel Barnier would set up a common system to wind up failed banks, a first step towards a controversial banking union in the eurozone.
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