French, German Leaders Nix Rescue Fund

Sarkozy, Merkel Reject Common European Fund As Being Inflexible To Handling International Crisis

(AP)  The leaders of France and Germany on Saturday rejected the notion of creating a common financial rescue fund for Europe, but insisted that a coordinated response will emerge after a weekend summit.

"The crisis demands extremely rapid responses" and a "European fund would pose gigantic problems" in decision-making among so many nations, French President Nicolas Sarkozy said.

"There is no question of a European fund," said German Chancellor Angela Merkel.

The two spoke at a news conference ahead of a Paris summit on Sunday bringing together the 15 leaders of the countries using the euro currency.

Neither leader would provide details on exactly what might emerge from Sunday's summit. Merkel spoke of creating a "common tool box," but said that "each country could use these tools to respond to (its) particular situation."

"We need a common approach in Europe, but we must be able to adapt to each national situation in a flexible way," she said.

She said that for Germany she does not exclude support for banks seeking it, but added that conditions would be attached.

"One cannot talk of nationalization," she said, adding that nothing has yet been decided on the subject.

"We have not yet decided which tools will be set out (and) in which way," Merkel said. "There will be clarity on Monday."

Monday is when decisions should be put in practice nationally, for Germany at least, Merkel said, calling it the "third step" after the meeting of Group of Seven finance ministers in Washington and Sunday's Paris summit.

A German official in Berlin said Merkel's Cabinet expects to meet Monday to decide on a rescue plan for the country's financial sector, according to an official who spoke on condition of anonymity because he was not authorized to comment.

The French and German leaders met in Colombey-Les-Deux-Eglises, a village east of Paris, the home and burial site of former French President Charles de Gaulle, to commemorate the 50th anniversary of a meeting between de Gaulle and German Chancellor Konrad Adenauer to seal reconciliation in the wake of World War II.

The meeting follows a weekend gathering in Washington of finance ministers from the so-called G-7: Japan, Germany, Britain, France, Italy, Canada and the United States. U.S. President George W. Bush later pledged a global response to the financial crisis that began in the United States but is beginning to ricochet around the world.

Sarkozy said that, ahead of Sunday's summit, he will meet with British Prime Minister Gordon Brown. Britain is not in the euro-zone.

Both Sarkozy and Merkel insisted on the need for a coordinated European response, with Merkel saying it must be "coherent, efficient and synchronized."

"We know where we want to go and how," but coordination is key, Sarkozy said.

Until now, Europe has responded with multiple approaches and case-by-case action.

Germany's go-it-alone stance has differed from France's blanket vow to protect depositors by helping banks. Ireland's unilateral move to guarantee all bank deposits caught other EU nations off balance and fearing a flight of capital to the Emerald Isles.

In a speech earlier, Sarkozy stressed the need, in particular, for lockstep coordination between France and Germany, widely considered the motor of European construction.

"A new world is being born of the havoc under our eyes," Sarkozy said, evoking the "exceptional circumstances" that brought de Gaulle and Adenauer together.

Both leaders stressed the need for a new financial order and said they were confident that Mr. Bush would accept an "after-crisis summit" to set down the foundations of a new era.

[antoniof123]

Don''t worry America the right wing is falling they hold to these ancient belief that the royal family (the rich) will be blessed by God.

Don''t worry wing nuts your day is coming like a theif in the night and you are not on the side of your savior because he never knew you.

[wardoglrs]

Should of listen to Dr Paul when he spoke about this 30 yrs ago. And now look at this mess.. Why cant the voter wake up and see the danger in both Obama & McCain??. But there may be still time please go to this site and fight for your country You are at war an its an economic war

http://www.campaignforliberty.com/index.php

[hypnotoad72]

The Americans will pick up the tab. Bush is passing the hat right now.

Posted by iphyt4u at 05:41 PM : Oct 11, 2008
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As usual, American altruism saves the world.

[iphyt4u]

The Americans will pick up the tab. Bush is passing the hat right now.