British chancellor warns of "cocktail of threats" to economy

Chancellor George Osborne warned on Thursday that Britain faces a volatile mixture of perils to its economy, citing problems in China, Russia and Brazil and instability in the Middle East.

"At the start of this year, our economy faces a dangerous cocktail of threats from abroad - from falling stock markets in places like China to instability in the Middle East," Osborne told the BBC.

"Our antidote is to go on putting our own house in order here in Britain so, far from 'mission accomplished' on the economy, 2016 is the year of 'mission critical'," he said ahead of a policy speech in Cardiff later Thursday, when he is expected to stress the need to continue austerity measures.

"It is precisely because we live in an uncertain world. It is precisely because we have not abolished boom and bust as a nation, that you need to take these steps, difficult steps," Osborne told BBC Radio 4.

"The difficult times aren't over," he said.

Last update: Thu, 07/01/2016 - 13:17

More from Europe

One dead after central Italy hit by series of quakes

One person was killed on Wednesday when a building collapsed during four powerful quakes that shook central Italy on...

Boris Johnson compares French president to WWII prison guard

British Foreign Secretary Boris Johnson on Wednesday compared Francois Hollande to a World War II prison guard after...

Merkel pledges to hold Europe together after Brexit

German Chancellor Angela Merkel pledged on Wednesday to hold the European Union together after Britain's planned...

Slovenia looks to capitalize on its connection to Melania Trump

As Donald Trump campaigned for the Oval Office, his Slovenian-born wife Melania did not receive much love and...

EC recommends Croatia's gradual integration into Schengen Information System

The European Commission on Wednesday made a recommendation to the Council of the European Union to gradually...