No European bank fund

6th October 2008, Comments 0 comments

At an emergency meeting on Saturday, France, Germany, Italy and Great Britain agreed to work together to help troubled banks, but will not form a bailout fund.

6 October 2008

PARIS -- The leaders of Europe's biggest economies will work together to support troubled banks, French President Nicolas Sarkozy said Saturday, but without forming a joint bailout fund.

"We have agreed to make a solemn engagement as heads of state and government to support banking and financial institutions faced with the crisis", he said.

"Each government will operate with its own methods and means, but in a coordinated manner", he said at a joint news conference with the leaders of Germany, Britain and Italy after an emergency summit in Paris.

"In a way, we have devised a doctrine", he added.

Sarkozy, British Prime Minister Gordon Brown, German Chancellor Angela Merkel and Italian Prime Minister Silvio Berlusconi met to develop a group response to the credit crisis, which reduced banks’ and stock markets’ ability to trade and convert cash, and slowed growth rates.

Before the talks, Germany and France strongly disagreed on the plan, with Berlin ruling against a French proposal to create a joint European bailout fund similar to the US package.

[AFP / Expatica]

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