The G7’s crisis financial meeting has issued a five-point plan the rich nation’s club says shows their determination to tackle the economic crash together.
US Treasury secretary Henry Paulson added the state would become shareholders in banks needing help, and the G7 accepted members could individually take other measures.
“This action plan provides a coherent framework that will direct our individual and collective policies to take steps to provide liquidity to markets, strengthen international institutions, protect savers and enforce investor protections. The G7 is compelled to robust international partnership and cooperation.”
The Paulson plan for America also allows for the raising of new private capital to complement the public money being poured in.
The G7 also said it would fully support the IMF as it grapples with the problem.
The weekend is offering some respite, and a chance for the world’s leading economies to get their acts together and convince the markets the worst is over before they re-open on Monday. In 48 hours, we will see if they have succeeded.