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G8 seeks action on eurozone turmoil

World leaders have piled pressure on the eurozone nations to resolve their problems amid fears the debt crisis in the single currency bloc could damage the entire global economy.

UK Prime Minister David Cameron, attending the G8 summit at Camp David, said the eurozone nations needed to heed calls from around the world for "decisive action" to end the turmoil.

The summit host, US President Barack Obama, emphasised the importance of countries being "absolutely committed" to restoring stability and economic growth while repairing their public finances.

Mr Cameron also hinted that he would like to see the European Central Bank follow the Bank of England in printing money to boost flagging demand on the continent.

The gathering in the Appalachian Mountains of Maryland left three of the eurozone's key players - Germany's Chancellor Angela Merkel, French President Francois Hollande and Italian Prime Minister Mario Monti - exposed to the full force of international alarm.

European Commission President Jose Manuel Barroso and the President of the European Council Herman van Rompuy were also invited to hear the extent of the concern that the effects crisis could spread far beyond the continent.

"The G8 can't instruct the eurozone what to do," Mr Cameron said. "But why meetings like this matter is that eurozone countries can hear from countries outside the eurozone, whose economies are affected: obviously Britain, but also America, Japan, Canada.

"It's very important these messages get across, and I would say there is a growing sense of urgency that action needs to be taken, contingency plans need to be put in place. And the strengthening of banks, governments and firewalls and all of those things need to take place very fast."

Opening the main working session of the day, Mr Obama also made clear that the world was looking for a solution amid fears a disorderly Greek exit from the single currency could trigger another global financial collapse.

"All of us are absolutely committed to making sure that growth and stability and fiscal consolidation are part of the overall package that all of us have to pursue in order to achieve the kind of prosperity for our citizens that we are looking for," he said.

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