European leaders will consider any emergency measures that may need to be taken in the wake of Greek elections on Sunday
David Cameron will hold a video conference call on Friday afternoon with European leaders attending the G20 summit in Mexico next week in a bid to forge a common position on the eurozone crisis.
The leaders will consider any emergency measures that may need to be taken when the markets open on Monday in the wake of the Greek elections on Sunday.
It is likely that the call will focus on what the central banks can do to stabilise financial markets by providing liquidity and preventing a credit squeeze if the Greek election leads to a victory for the anti-austerity parties.
The call will be held between Cameron, the German chancellor, Angela Merkel, the French president, François Hollande, the Italian prime minister, Mario Monti, the Spanish prime minister, Mariano Rajoy, and the two leaders of the European Union.
A Downing Street spokesman tried to play down the significance of the call saying it was a routine discussion of the summit agenda.
Cameron's official spokesman said the call was a long-scheduled opportunity for the leaders to discuss the issues on the G20 agenda.
Asked about the Greek elections – triggered by the failure to form a government in Athens after polls last month – Cameron's spokesman said: "It is a matter for the Greek people and clearly they have to go through their democratic processes.
"But we need to see an end to the uncertainty which is damaging the European economy and damaging our economy."
He added: "We need to see action to deal with the problems in the eurozone sooner rather than later. The prime minister has talked on a number of occasions of the chilling effect the situation in the eurozone is having on our economy and the global economy."
The chancellor, George Osborne, warned in his Mansion House speech on Thursday night of dire consequences if Greece were to leave the eurozone without an ambitious plan to deal with the fallout.
Osborne again suggested that a Greek exit might be the only way to force fundamental reform in the currency area.
But allowing the struggling country to leave before measures were in place to contain contagion would be the "worst case for everybody", he said.
The comments came after interest rates on Spanish bonds hit fresh highs – sparking fears about the country's ability to service its debts.
