The current financial system of the European Euron (EU) still does not have any of the key elements to support a successful single currency, British Prime Minister David Cameron said on Thursday.

In a special address delivered at the World Economic Forum annual meeting, the British prime minister named a list of key elements that "are common to all successful currency unions."

These includes a central bank that can convincible stand behind a currency, a financial system, the deepest possible economic integration with the flexibility to deal with economic shocks, and a system of fiscal transfers and collective debt issues that can deal with the tensions in the imbalances between different countries and regions within the union.

With these key elements in place, "there are successful cases of single currency before," Cameron said.

But "currently it's not that the Eurozone doesn't have all of these. It's it doesn't really have any of these," he argued.

The British prime minister went on to say that if countries are close enough in their economic structure, then tensions are less likely to arise. But when imbalances are sustained: some countries do better than others year after year, then there comes real problems which is what the current system has demonstrated.

Private capital flows may hide these problems for a while. In the eurozone, that is what happened, but once market confidence dry out the system are left in an unsustainable position, he said.

To build all these mechanism to support the single currency requires "radical, difficult steps for any country to take," Cameron said, noting that "knowing how necessary, but also how hard they are, is why Britain did not join the Eurozone."

In his speech, the British prime minister encouraged the EU to take bold actions to get rid of regulatory burdens in order to regain competitiveness.

"Europe's lack of competitiveness is its Achilles heel," Cameron said, given that "Lisbon strategy has failed to deliver the structural reforms that we need."

He cited newly released statistics from the World Economic Forum, saying that more than half of EU states are now less competitive than they were this time last year, while five EU member states are now less competitive than Iran.

The over-burdening regulations in the EU were blamed to be partly responsible for the lack of competitiveness in the continent.

He mentioned that there are still a colossal 4,700 professions across the EU to which access is regulated by the governments and unnecessary protectionist measures, that impose burdens on business and governments and can destroy jobs, and disagrees with the introduction of Financial Transactions Tax, which could cost the EU 200 billion euros in GDP and could take out almost 500,000 jobs.

"Even to be considering this, at a time when we are struggling to get our economies growing, is simply madness," he said.

To address the issues, the British prime minister made several recommendations, which includes putting all proposed EU measures under tested on their impact on growth before put them in use, setting a target to reduce the overall burden of EU regulation, introducing a new proportionality test, to prevent needless barriers to trade and services and slashing the number of regulated professions in Europe.