Blair scare over Euro woes - The Sun

FORMER Prime Minister Tony Blair today warned the whole of Europe had to rally round to stop a "devastating" collapse of the Euro.

Mr Blair insisted the worst-case scenario would have terrible effects for Germany if it came to pass.

Speaking to Andrew Marr he said the single currency had been built on the decade-long economic "myth" Italian and German economies were the same.

He said: "The decisions are immensely difficult but they have got to be taken.

"Right now for the single currency it is absolutely essential, if it is to be preserved, that the whole weight of Europe and its institutions come behind it.

"You have got to have a long-term framework of credibility behind any short-term decision and that means some measure of strong fiscal co-ordination alongside monetary union and you have got to have major reforms of the European social model.

"The myth that the German and Italy economies were the same that ten-year myth has now evaporated.

"The choices are very, very difficult and very painful. They are painful if we take the measures necessary to stabilise the single currency; if the single currency broke up it would be catastrophic.

"I am not underestimating the difficulties of that or the huge problem that Germany has got in giving such a pledge. But, on the other hand, if the euro breaks up that is a devastating blow for Germany.

"You've got to have the whole system stand behind this."