Chancellor George Osborne has warned that chances of a British economic recovery are being "killed off" by the Eurozone crisis.

In a stark warning to the currency bloc, Mr Osborne said Europe was facing a "moment of truth" which could determine the future of the continent.

The comments were some of the Chancellor's strongest to date, and the clearest sign yet of his increasing exasperation at the failure of the Eurozone to find a long-term solution to the crisis.

Writing in The Sunday Telegraph he said: "Our recovery - already facing powerful headwinds from high oil prices and the debt burden left behind by the boom years - is being killed off by the crisis on our doorstep.

"I know from talking to British businesses that our country is bursting with entrepreneurial spirit and exciting investment plans that are being held back because of uncertainty about the future.

"That's why a resolution of the Eurozone crisis would do more than anything else to give our economy a boost."

He added: "The British Government is clear that it is strongly in Britain's interests for our biggest export market to succeed; the risks for us of a disorderly outcome are huge."