Europe’s leaders and finance chiefs spent the weekend frantically attempting to avoid meltdown in the markets after last week’s mammoth global sell-off of stocks.
G7 members held emergency telephone talks and then issued a joint statement.
They committed themselves to ensuring liquidity to support financial stability and growth.
They then went on to say that in order to do this they would take all necessary measures.
Earlier the European Central Bank signalled that it would buy up Italian and Spanish bonds in order to shore up confidence and prevent debt contagion within the eurozone.
The ECB’s pledge to intervene significantly came after Italy announced it would bring forward the implementation of austerity measures.
The weekend also saw a series of phone calls between European leaders including French President Sarkozy and British Prime Minister David Cameron. Italian premier Berlusconi talked to his Spanish counterpart Zapatero.
It seems everyone is talking to each other and doing what they can to avoid chaos on the markets.
However analysts are predicting that with all the debt fears in Europe combined with downgradring of the US credit rating, it will be some time before stability returns.
Some are saying the very best they can hope for is to avoid a double dip recession.