Fallout: The Financial Crisis

Europe still needs a crisis plan

Stephen Beard Oct 2, 2008
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Fallout: The Financial Crisis

Europe still needs a crisis plan

Stephen Beard Oct 2, 2008
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TEXT OF STORY

Renita Jablonski: In Europe, leaders are having even more trouble organizing a large financial rescue package of their own. From London, Stephen Beard reports.


Stephen Beard: France proposed the idea: A single pan-European $400 billion fund to bail out any failing European bank. But Germany rejected the plan. The Brits vetoed it, too, preferring a piecemeal approach.

Yet the banks here are clearly in danger. So far this week, four big ones have been propped up by individual governments. The head of the European Commission has appealed for a European response to the crisis. E.U. leaders hold an emergency summit on Saturday.

But agreement looks to be in short supply. The European Union is under strain. Bond traders are even pricing in the risk of the Eurozone falling apart.

In London, this is Stephen Beard for Marketplace.

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