Threat to UK GDP as Merkel warns of decade of misery

German chancellor Angela Merkel has warned the eurozone faces another ten years of economic uncertainty as the G20 fails to agree how to bail out Greece.

She said to have any chance of solving the crisis, everyone in Europe had to "make an effort and do their homework", the Daily Mail reports. "This debt crisis will not simply go away," Merkel said. "It will certainly be a decade before we are in a better position." Meanwhile, the Ernst & Young Item Club predicted the eurozone crisis could push UK GDP to drop by 4% to below its levels during the 2008-09 recession. Marie Delon, senior economic adviser at the firm, said: "We could see a contraction of 5 or 6% in the eurozone. Share prices could fall by 30 or 40% and credit conditions...