“Action at a European level needs to be matched by difficult domestic decisions,” he wrote. “The affirmation of the UK’s triple A credit rating, and the fall in our market interest rates, shows that it is possible to earn credibility with a convincing deficit reduction plan.”
Britain has a vested interest in the health of key European trading partners. Their reaction to Britain's advice may be icy – some Brits have gloated over the euro’s woes as a vindication of their opposition to Britain ever joining the single currency.
Thomas Klau, a Paris-based analyst with the European Council on Foreign Relations think tank, says: “Many in other EU members states will regard it as being a bit rich for a British chancellor to be now telling the Continent how to deal with this crisis."
“Clearly, in the opinion of many continental Europeans it was the British government’s fierce defense of city [financial] interests and its continuing refusal to accept a need for tougher regulation that was one of the key factors that led us to the financial disaster in 2008," he says.
Mr. Klau, who coauthored a report recently advocating a greater pooling of the eurozone’s resources and shared economic sovereignty, predicts continuing uncertainty in the bloc amid a “pattern of divergence” involving relatively strong growth by Germany and the states around it but “dire prospects” for more peripheral eurozone countries.
By contrast, Mr. Cameron predicted Thursday that Britain's path to a sustainable recovery was within reach, although it would be tough.