King candid on depth of Euro crisis

The "Euro is tearing itself apart without any obvious solution".

Well for someone who said he didn't want to fan the flames, by refusing to detail this country's contingency plans in case of a Euro meltdown, that is perhaps a rather incautious statement from the Governor of the Bank of England.

Just a couple of days ago, George Osborne criticised those who were talking openly about a Greek exit or Euro breakup.

But this morning, Sir Mervyn has been pretty candid about the level of risk he sees.

He says there is a "storm coming towards us" and the question is not in his view if the euro actually survives, but if countries economies become more balanced.

"Whatever happens" he says, "there are many difficulties ahead."

The Bank has today cut its growth forecast to 0.8 percent for the whole of this year, and suggested that the Jubilee may now take as much as 0.5 percent off that.

It is well worth knowing those weak numbers do not include the possibilities of a Euro collapse.

It may be hard to put figures on it, but it is clear in his view we are already being hit by ongoing uncertainty about Europe and it could be about to get a whole lot worse.