EU confront market crisis

Leaders of the 15 eurozone meet in Paris to try to establish a common front to tackle the financial crisis. They are joined by British PM Gordon Brown, who wants to adopt measures similar to your bank bailout plan.
The French cabinet held a special session Monday to approve a bill that offers guarantees and recapitalization of banks in trouble.

Portugal’s finance minister has also announced a 20bn euros ($ 27bn, £ 16bn) state guarantee for banks.

The rescue plan involves the conduct of British pounds 50bn ($ 85bn) available to banks as additional capital, after the £ 200bn available for short-term loans from the Bank of England and offered £ 250bn in loan guarantees for loans to banks to each other.

The French plan sounds similar, although details are not yet clear.

“We need a law to implement a state guarantee and a body that is responsible for raising funds to help banks cope with their need to recapitalize,” said Gilles Carrez, a senior member of the parliamentary committee on finance.

Common plan

In the United Kingdom has not adopted the euro, Mr Brown was not due to take part in the meeting of the leaders euro.

However, a Downing Street spokesman said the French president had been invited to attend part of it.

EU heads of the four largest economies – Britain, France, Germany and Italy – were first held a crisis summit last week, but were divided on the need for a common plan.

Before Sunday in the euro zone meeting, French President Nicolas Sarkozy and German Chancellor Angela Merkel said that she would submit a series of proposals to facilitate the freezing of credit that has led to the collapse of several major international banks.

However, after meeting in Paris on Saturday, the two leaders said the summit would not result in a series of financial rescue of the Fund for Europe, along the lines of a recent $ 700bn rescue by the government in the U.S..

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