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

Germany, US, others offer to bolster NATO presence around Black Sea

Six NATO countries, including the United States and Germany, offered Wednesday to help bolster the alliance's...

Three earthquakes in Italy cause "apocalyptic" damage, but no victims

Three major earthquakes Wednesday struck a region in central Italy that had already been hit by a deadly seismic...

Belgium closes in on CETA deal as Thursday summit hangs in balance

Belgian regional governments were closing in on a compromise late Wednesday that would allow the country to approve...

Putin: Ukraine cutting power off in Crimea was "serious crime"

Ukraine's shut-off of electricity and drinking water to Crimea following Russia's annexation of the peninsula was "...

Russia drops request for navy to use Spanish port under NATO pressure

Russia has withdrawn its request for warships to use the Spanish port of Ceuta on the Mediterranean Sea, the Russian...