Like other leaders in Europe, French ministers came together for their own emergency cabinet meeting to save their country’s banking system. And, like Britain and Germany, French President Nicolas Sarkozy announced his own bailout package to stave off financial collapse, hoping it would be enough.
French President Nicolas Sarkozy said: “The state will supply loan guarantees to banks which need refinancing. The total guarantee is set at 320 billion euros. This figure is the maximum. Without doubt it will never be reached.
“This evening we see a united Europe has done more than the United States in the amount committed, and I think the plan we are presenting is totally transparent. The French people will know exactly what we’re going to do”.
Sarkozy’s safety package follows other banking blueprints being put in place across Europe. Under the plan, the state will automatically guarantee interbank lending up to the turn of 320 billion euros and inject a further 40 billion to recapitalise ailing institutions. It is hoped the bailout to shore up France’s banking system will now be adopted by the French Parliament by the end of the week.