Global moves to restore confidence to the money markets seem to have paid off. European governments agreed to make billions of euros available to shore up the system; the exact figures will be announced later, but President Sarkozy made it clear he and his collegues expect all sides to accept their obligations:
“The banks, the market operators must realise the scale of the challenge, we expect them to show a sense of responsibility, at least equal to that shown by the leaders of the eurozone who have made an unprecedented effort to tackle the crisis,” said Sarkozy.
European leaders were united in their plan to help tackle the world’s worst financial crisis for 75 years. The German bank rescue plan alone would be worth more than 400 billion euros – it is being fast-tracked through parliament in what is seen as a u-turn by Chancellor Merkel after she said she would not issue a blank cheque.
The International Monetary Fund said it believed the worst of the crisis may already be over, but said lessons must be learned. It said individual governments could intervene when necessary, but insisted any action must be co-ordinated and “massive.”