French President Nicolas Sarkozy announced Sunday evening that the European leaders have agreed on a common plan to tackle the banking crisis using the British model to create stability in the economic system. Along with British Prime Minister Gordon Brown, Sarkozy took the initiative in the campaign to save the world economy, especially after the IMF announced that the financial system is threatened by the lack of liquidity.
The fifteen Euro member-states met in Paris Sunday night and agreed on a common plan whereby the governments would inject large sums of money into the bank system as well as safeguard the credit system between banks. "Europe is united to tackle the crisis", Sarkozy said, adding that each country could be forced to come up with their respective measures.
Swedish Prime Minister Fredrik Reinfeldt said that "whether the bailout package would have sufficient effect depends upon how the guarantees are exactly formed." He added: " We have been very active, not least with Denmark and Finland, and many here have also asked since we have had a similar experience with a banking crisis ( in the 1990s ) and how we resolved it."
He also said that, as far as the Euro member-states package is concerned, everything will depend upon the details, how they will be formed; what would be the limits of the guarantees and how would the members react in common against a financial institution that needs saving.#
No comments:
Post a Comment