- Title: LUXEMBOURG: EU ministers urge coordination in interests of financial stability
- Date: 7th October 2008
- Summary: (W4)LUXEMBOURG (OCTOBER 6, 2008) (REUTERS) ITALIAN FINANCE MINISTER GIULIO TREMONTI ARRIVING DUTCH FINANCE MINISTER WOUTER BOS TALKING TO MEDIA (SOUNDBITE) (English) DUTCH FINANCE MINISTER WOUTER BOS SAYING: "There are some plans on the table. It is extremely important to arrive at a common European framework and I guess in the end it will be about two matters: first of all what does it exactly guarantee and second up to what level, up to what amount of money. On this we see too much variety in Europe. We risk a race to the bottom or a race to the top if you like. I don't think that is in Europe's interest." ARRIVAL (SOUNDBITE) (French) FRENCH FINANCE MINISTER CHRISTINE LAGARDE FOR THE EU PRESIDENCY SAYING: The first thing that we must all do is get together to coordinate together and to find, relative to our needs and of our national markets, the necessary measures to see a return of stability. This is the spirit in which the president found an accord with his three big partners. This is the spirit in which the communique from the 27 member states came out this afternoon and so it is in that spirit that we must work. We must adapt to the market conditions but the objective must be the same and coordination between us all is very important. (Answering reporter's question: 'How do you explain the collapse of the markets after the meeting of the big 4?') First we will work on the stability issue, ok?" LAGARDE WALKS INTO VENUE
- Embargoed: 22nd October 2008 13:00
- Keywords:
- Location: Luxembourg
- Country: Luxembourg
- Topics: European Union,Economic News
- Reuters ID: LVAY6G0UQCXXZ36ICDEJBR4GNX
- Story Text: The EU presidency urges all 27 EU member states to work together to bringstability to the financial market.
The EU renewed its appeal to EU countries to coordinate national responses to the financial crisis on Monday (October 6) as more member states acted unilaterally to protect bank deposits and rescue ailing banks.
Commission President Jose Manuel Barroso said the European Union executive stood ready to work with governments to ensure that national bank deposit guarantees "interact properly".
Ireland was first last week to issue an unlimited guarantee of deposits in its own banks, angering neighbouring Britain and raising competition concern in Brussels.
Dutch Finance Minister Wouter Bos said the European member states risked collapsing because of the lack of coordination between them.
"There are some plans on the table. It is extremely important to arrive at a common European framework and I guess in the end it will be about two matters: first of all what does it exactly guarantee and second up to what level, up to what amount of money. On this we see see too much variety in Europe. We risk a race to the bottom or a race to the top if you like. I don't think that is in Europe's interest," Bos said.
Coming late at the Eurogroup meeting in Luxembourg French Finance Minsiter Christine Lagarde said all the ministers' energy should go into bringing stability.
"There are some plans on the table. It is extremely important to arrive at a common European framework and I guess in the end it will be about two matters: first of all what does it exactly guarantee and second up to what level, up to what amount of money. On this we see see too much variety in Europe. We risk a race to the bottom or a race to the top if you like. I don't think that is in Europe's interest," Lagarde said.
Germany said on Monday it was considering a nationwide "umbrella" to shield its banks from market turmoil as concern mounted in Berlin about the risks of financial contagion for Europe's largest economy.
Germany has resisted pressure from European partners for an EU-wide rescue package for banks that would mirror the 700 billion U.S. dollar plan in the United States and, until Monday, argued that bank troubles should be handled on a case-by-case basis.
But Steinbrueck reversed course on Monday saying he was very much aware that at some point individual solutions are no longer enough.
Sweden, Austria and Denmark followed Germany's lead by offering guarantees to savers. - Copyright Holder: REUTERS
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