Time running out for Europe: chancellor George Osborne

The time for Eurozone nations is running out and European Union (EU) leaders need to get a grip on the spiraling euro crisis, Britain's chancellor, George Osborne warned on Saturday.

''I think everyone here understands the severity of the situation, that's been the theme of all the discussions we've had yesterday and I'm sure it will be the theme today,'' Osborne said in Wraclow, Poland, where EU treasury chiefs met on how to tackle the crisis in the continent. The ministers, however, failed to resolve their differences and decided to postpone taking a decision on the future of Greece.

''I have to say it's not just an issue for the euro zone,'' the British chancellor said, referring to the crisis caused by Greece's debt burden. ''People know that time is running out, that the euro zone needs to show it can get a grip on the situation.''

The time was short to save the euro, he noted, even as finance ministers of the EU delayed taking a decision to bail out Greece. European leaders had in July agreed to support Greece, but on Saturday they decided to postpone the decision till October. Greece, however, will run out of cash by then, forcing it to default on its debts, triggering off yet another major global crisis.

Osborne admitted that even the UK was not immune from the likely financial meltdown that threatened the single currency European system.

The chancellor was joined by his predecessor – and now justice secretary – Ken Clarke, who also launched an attack on the US and western Europe. ''The political leadership in the US and large parts of Western Europe have been totally overwhelmed by the dimensions of the crisis – not able to cope,'' said Clarke.