David Cameron has given his strongest warning yet that the euro is doomed to fail as fears grow that Greece is close to crashing out of the single currency.

The Prime Minister dismissed new French president Francois Hollande’s claim that Britain was ‘indifferent’ to the fate of the eurozone, insisting it was essential for our economy that the Continent recovers.

‘We want the euro area to succeed,’ Mr Cameron said in an interview with the Daily Mail. ‘It’s 40 per cent of our exports. It’s vitally important these economies get back to growth.

Crashing down? Fears are growing that Greece could soon fall out of the euro, with David Cameron saying their exit could spell the end of the currency

‘The difficulty for us is we take a different view about the euro. We didn’t join. We think that single currencies really require single governments if they are going to work properly.

‘We have to recognise that the euro is a project in enormous transition. It could go in any number of different ways.

Making sense of the euro for me would mean that those eurozone countries would have to have much more co-ordinated economic policy, much more co-ordinated debt policy.

‘There’s nowhere in the world that has a single currency without having more of a single government.’

Markets slumped yesterday as doubts grew about Franco-German relations following the victory of socialist President Hollande over Nicolas Sarkozy.

EU leaders will gather later this month for an emergency summit to discuss the new French leader’s proposal to tear up an EU ‘fiscal pact’ to allow for a greater focus on growth, rather than austerity.

Athens, meanwhile, was gripped by political chaos. The far-Left Syriza group was seeking to form a new government after Greece’s two main parties saw support crash in Sunday’s elections.

David Cameron has dismissed French president Francois Hollande's (right) claim that Britain was 'indifferent' to the fate of the eurozone, insisting it was essential for the economy that the Continent recovers

Two-thirds of voters backed parties that refused to sign up to austerity measures demanded by Brussels.

If a deal is not reached in three days, the country will have to return to the polls.

Mr Cameron said Greece was in a ‘very difficult situation’ and gave a strong hint that he believed it should ditch the euro and reinstate the drachma, giving it freedom to cut interest rates and devalue its currency.

‘All these countries have to make their own choices,’ the Prime Minister said.

‘We chose to stay out of the euro. I have always believed different countries at times will need different economic policies, interest rates tailored to their own needs.

‘We are having to do very difficult things, but we are able to do things to ourselves, for ourselves, by ourselves.

'We can do them at a time of having very low interest rates and a currency that is enabling the competitive parts of our economy to get out and sell to the world.

‘We have made our choice. What I think about all these European economies is they have to make their choices.

‘We want them to sort out the problems that they have. We want to be in the single market, we want European co-operation, we don’t want to be in the euro.

‘We’ve started to demonstrate that it is possible to have a Europe where you’re leading some things – the single market, Nato – but other things you’re not involved in.’

David Cameron has given his strongest warning yet that the euro is doomed to fail as fears grow that Greece is close to crashing out of the single currency.

The Prime Minister dismissed new French president Francois Hollande’s claim that Britain was ‘indifferent’ to the fate of the eurozone, insisting it was essential for our economy that the Continent recovers.

‘We want the euro area to succeed,’ Mr Cameron said in an interview with the Daily Mail. ‘It’s 40 per cent of our exports. It’s vitally important these economies get back to growth.

‘The difficulty for us is we take a different view about the euro. We didn’t join. We think that single currencies really require single governments if they are going to work properly.

‘We have to recognise that the euro is a project in enormous transition. It could go in any number of different ways.

Making sense of the euro for me would mean that those eurozone countries would have to have much more co-ordinated economic policy, much more co-ordinated debt policy.

‘There’s nowhere in the world that has a single currency without having more of a single government.’

Markets slumped yesterday as doubts grew about Franco-German relations following the victory of socialist President Hollande over Nicolas Sarkozy.

EU leaders will gather later this month for an emergency summit to discuss the new French leader’s proposal to tear up an EU ‘fiscal pact’ to allow for a greater focus on growth, rather than austerity.

Athens, meanwhile, was gripped by political chaos. The far-Left Syriza group was seeking to form a new government after Greece’s two main parties saw support crash in Sunday’s elections.