Cameron: Britain will not walk away from Europe

Britain is not "walking away" from Europe, but safety measures must be put in place for EU countries that are outside the single currency, said Prime Minister David Cameron.

Addressing the annual World Economic Forum in Davos, Cameron was insistent the veto of the EU treaty he used before Christmas was not a sign Britain wants to leave the European Union.

"Let me tell you, nothing could be further from the truth. Britain is part of the EU, not by default, but by choice".

The PM said he wants Europe to succeed, not just as an economic force but as a political force. "I believe Europe can recover its dynamism, but only if bold actions are taken and fundamental issues are addressed.

"There is nothing about the crisis we do not understand," he said, describing the problems as "man-made".

Cameron also criticised the eurozone's response to the crisis and its long-term failure to make itself more competitive. Half of EU countries are less competitive then they were a year ago and five are less competitive than Iran, he said. 

Since the start of the crisis, the level of government debt per head of the population in Europe has risen by €4,500 (£3750), he said. 

During the Q&A session that followed his speech, Cameron prioritised Greece, and the banks as the most important short-term issues that must be addressed in Europe, as well as the introduction of a firewall. European banks will need to be recapitalised and an agreement reached on a new bailout for struggling eurozone nations, he said.