Bad news ahead? David Cameron: "warning lights" flashing for economy

David Cameron Open Mouthed

David Cameron's commitment to Britain's economic plan could be scuppered in the Chancellor's Autumn Statement on 3rd December.

Prime Minister David Cameron has defended the government's long term recovery plan, warning that that Europe is again on the "brink of recession."

He said that "red warning lights" are flashing over the state of the world's economy.

His statement comes after the G20 meeting of world leaders, and only days after Bank of England governor, Mark Carney, said that Europe was being dogged by stagnation.

Mr Cameron blamed world events, such as Ebola, Middle East conflict and Russia's actions in Ukraine for the instability and uncertainty which has lent itself to the slowdown within the Eurozone:

“The Eurozone is teetering on the brink of a possible third recession, with high unemployment, falling growth and the real risk of falling prices too,

“Emerging market economies which were the driver of growth in the early stages of the recovery are now slowing down. Despite the progress in Bali [2013], global trade talks have stalled while the epidemic of Ebola, conflict in the Middle East and Russia’s illegal actions in Ukraine are all adding a dangerous backdrop of instability and uncertainty.”

With the Chancellor's Autumn Statement due on December 3rd, could David Cameron's tone be a forewarning for bad news?

The statement will announce new growth forecasts and their impact on public finances and spending. 

A reduction in growth could lead to new proposals for further spending cuts in Britain, in a government term where public services and spending have already been slashed.

With six months to go until the next general election, David Cameron and his government will need to show full commitment to their economic plans for Britain and show that they are working against the backdrop of a faltering Europe. If the news on December 3rd is as bad as we fear, then it may prove difficult to do that.