Finance Minister of EU Member States to Coordinate Anti-Crisis Measures
Azerbaijan, Baku, 7 October/ Trend , corr A. Badalova/ Ministers of economy and finance of 27 European Union member states will agree upon on anti-crisis measures at the meeting of the Council of the European Union in Luxemburg on the elimination of impact of world financial crisis on 7 October.
The day before, Euro-group decided to fight impact of world crisis by joint efforts, to save banks which are on the brink of losing liquidity.
Jean-Claude Junker, Prime Minister of Luxemburg said at the end of the meeting that every effort will be made to find a way out the situation when failure of financial institutions will assume systematic character.
Last week, at a summit of EU leaders in Paris, it was decided to fight financial crisis with one's one, but not joint efforts. As distinct from the approval of a plan to save US financial sector, head of states decided not to offer joint bail out to banks suffering from loan related problems.
"At Saturday's meeting, the leaders of Germany, the UK, France, Italy and the European Commission came to the conclusion that each national government should pursue its own strategy to deal with problems in the banking sector, rather than adopting a coordinated response," Jennifer McKeown, economist at the UK Capital Economics consulting company said.
German Chancellor Angela Merkel appeared to take this to heart very quickly, with Sunday's announcement that the government would vouch for all private deposits with German banks, McKeown said to Trend by e-mail.
No concrete plans have been outlined and the pledge sounds much more like the vague assurances that we have already heard from the Greek and UK governments than an explicit guarantee along Irish lines, she said.
"Nonetheless, it is clear that governments are ready to act to protect private deposits. This might help to restore some public confidence in the banking sector, but perhaps at the cost of a serious deterioration in public finances, implying some belt-tightening and weaker growth prospects in the medium term," McKeown said.
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