World leaders were warned last night that they have just six weeks to save the euro from collapse.
another day of gathering economic gloom, George Osborne savaged
eurozone leaders for failing to get a grip on their towering debts.
He said: 'Patience is running out in
the international community. There is a sense from across the leading
lights of the eurozone that time is running out for them.
'The eurozone has six weeks to resolve this political crisis.'
Osborne also signalled dramatic plans to prop up Britain's faltering
economy, opening the door for a rescue plan that would see the Bank of
England lend directly to struggling small businesses.
In other developments:
is a growing expectation in Whitehall that the Bank of England will
authorise another emergency injection of cash into the economy with a
second round of 'quantitative easing' – essentially, printing money.
much as £300billion is expected to be flooded into the economy despite
the risk that it will push inflation still higher, increasing the cost
Bank has already poured £200billion into the economy to try to bolster
growth, but there have been renewed calls for another dose of the
Osborne, in Washington, signalled that he is open to the idea of the
Bank ring-fencing some of the cash for direct loans to small or
medium-sized firms that are in urgent need of help to expand or simply