The British Prime Minister David Cameron has spoken to French President Nicolas Sarkozy to discuss eurozone finances and the
US credit rating being downgraded. Downing Street said that, in a phone conversation, they agreed on “the
importance of working together”. Meanwhile, Chancellor George Osborne, who is on holiday, spoke to the head of
the International Monetary Fund and the current European Union president.

But Labour accused the government of “complacency” in the financial
crisis. On Friday, Standard & Poor’s downgraded the AAA rating for the US for the
first time, citing budget deficit concerns. On the same day, European stock markets continued to fall with investors
worried about the eurozone debt crisis and the weak US economy.

Eroding confidence

It came as fears over the ability of governments to pay their debts – which
have led to Greece, the Irish Republic and Portugal already being bailed out –
spread to Spain and Italy. Correspondents say the downgrade could erode investors’ confidence in the
world’s largest economy. Meanwhile, shadow chancellor Ed Balls criticised the prime minister,
chancellor and their deputies for taking their holidays at the same time.

Despite being on holiday, Mr Cameron discussed “the euro area and the US debt down grade”, according to a Downing Street spokesman.

“Both agreed the importance of working together, monitoring the situation
closely and keeping in contact over the coming days,” he said.

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