Eurozone banks in deep trouble, British minister says

21 May 2012

The eurozone's banking industry is in full-blown crisis mode as serious issues in several member states continue to grow, a British cabinet member has said.

UK justice secretary Ken Clarke believes the region's financial sector is "in tatters" and warned that Britain remains "heavily exposed" to the ongoing economic crisis engulfing the region.

Speaking on Sky News, Mr Clarke called on the Greek public to "face up to reality" by voting for a party that has pledged to take strong action to cut the country's sizeable deficit.

The former chancellor predicted that the country's problems could become even more serious if the electorate opts for "cranky extremists", as doing so would likely cause the nation to default on its debt.

"Everyone says they will leave the euro. Actually that is quite likely but doesn't necessarily follow ... no-one knows exactly what will happen in the rest of Europe," he stated.

By Claire Archer

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