Darling: G20 Must Avert Financial 'Calamity'

Former chancellor Alistair Darling has told Sky News G20 finance ministers must act this weekend to address the economic crisis or face a financial "calamity".

Mr Darling said he did not think there was the political will internationally to deal with the problems, adding that no action was "inexcusable".

"You do need international co-ordination with countries acting together," he told Boulton and Co.

"Now all the people that can make things happen, happen to be in Washington this weekend and they cannot be allowed to leave simply hoping for the best.

"Words aren't enough, they've got to show markets, they've got to show countries across the world that they are prepared to take the necessary action at every level.

"Otherwise we run the risk of heading towards the sort of calamity that we faced, almost faced, in 2008."

Mr Darling urged world leaders to learn from what happened in 2008.

He said: "I'm beginning to wonder just how bad it has to get before anyone does anything.

"Surely we haven't forgotten what happened in 2008... what we did then was to take action that was more decisive on a larger scale than anyone was expecting and it stopped it.

"And other countries followed us in the following days and weeks... Yes, you've got to get your borrowing down but you've got to get it down in a way that means you get growth to repay that borrowing.

"Countries have got to act together, otherwise markets will just pick them off.

"Before anyone leaves Washington this weekend, they must agree that they will take action, not just speak warm words that would give markets confidence.

"It is a complete lack of confidence that is really causing the turbulence today."

Meanwhile, the Labour leader has said Prime Minister David Cameron "doesn't have a plan" to deal with the crisis.

Ed Miliband has called for co-ordinated action, adding: "What we need is a plan for growth here at home and across the world - that's the way we tackle the debt issues we face.

"The problem is the Prime Minister may have woken up to the crisis, but he doesn't have a plan to deal with it."

He called for an emergency meeting of the G20 world leaders to be brought forward and "get a grip on the crisis facing the world".

He added the PM was "quite good at lecturing other people on getting their problems sorted out", but was not offering solutions to problems, claiming the Government's spending cuts were "not a solution to the problems the world faces".