Britain today pleaded with Europe's dithering governments to "recognise the gravity" of the eurozone crisis and take more decisive action.
Concern is growing that divided leadership in both the EU and the United States could tip the world into a second credit crunch.
In a keynote speech before flying to a summit of international finance ministers in Poland today, Chancellor George Osborne begged his opposite numbers to stop fumbling.
"At today's meeting I will be looking for my eurozone colleagues to send a clear signal that they truly recognise the gravity of the situation and are dealing with it," the Chancellor told a business festival in Manchester. "Time is short. The eurozone must act now."
The euro slipped this morning as traders pocketed gains from a temporary boost yesterday when five of the world's biggest central banks, including the Bank of England, took co-ordinated action to pump loans into banks running short of finance.
Investors were then waiting for an outcome of today's summit, which was being joined by America's Treasury Secretary Timothy Geithner. "The market is not ready to make any big bets on this meeting. Investors will be very focused on anything that indicates disagreement between European politicians and finance ministers on what to do on this serious issue of eurozone debt," said Niels Christensen, currency strategist at international banking group Nordea. Christine Lagarde, the new head of the IMF, has warned of "a dangerous new phase" for the world's economies.
Mr Osborne believes the 17 eurozone countries must start by resolving uncertainty about Greece, which many economists think will default on its debts and crash out of the euro, help refund the banks and improve productivity. In the long term, he says, they must accept the "remorseless logic" that the euro will be stable only if the 17 members agree on deeper political and economic integration.
He went on to warn that: "There is a lack of belief in the ability of political systems in the eurozone and North America to respond. All these factors are weighing down on global confidence and having an impact at home in the UK."
Britain is outside the euro but deeply exposed to knock-on effects if the currency gets into worse trouble.
