Late on Friday Belgium became the latest European nation to take drastic action to save its big banks, on the eve of the meeting of Eurozone nations this weekend to work out their co-ordinated strategy.
The Germans are also reportedly in the process of drawing up their own deposit guarantee and bank rescue package, similar to those announced by Britain’s Gordon Brown, and the Belgian plan.
The French and Spanish prime ministers also met on Friday, when José Luis Rodriguez Zapatero said a Eurozone meeting was a matter of urgency.
Nicolas Sarkozy, currently leading the EU, hastily arranged the weekend summit, but that was on the cards anyway following the market’s refusal to be calmed by individual government’s actions this last week.
The Eurozone nations acting together may be able to restart the interbank lending that has frozen up and risks crashing the entire financial system.