The euro zone will most likely hold together but still has to take decisive action to resolve its debt crisis, Prime Minister David Cameron said on Monday.

Asked if he thought the euro zone would remain intact, Cameron told Sky News: I think the most likely outcome is yes, it will hold together, but it has to take some pretty decisive steps.

These included short-term sticking plaster steps such as a proper firewall to prevent contagion around Europe and a much more decisive settlement for Greece, he said.

The longer term is you've got to address the fact there's a

lack of competitiveness between Germany on the one hand and many of the southern European countries on the other, he said.

(Reporting by Adrian Croft)