Europeans Seek Unified Credit Crisis Strategy

As individual states act, leaders scramble for coordinated measures
By Clay Dillow,  Newser Staff
Posted Oct 7, 2008 9:19 AM CDT
Italy's Finance Minister Giulio Tremonti, right, talks with EU Commissioner for Internal Market and Services Charlie McCreevy at the EU finance ministers meeting in Luxembourg today.   (AP Photo)
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(Newser) – Finance ministers are meeting today to hash out a plan to steady Europe’s banking system, but resolution continued to be elusive, the New York Times reports. They raised the minimum level for deposit guarantees to €50,000, though some pushed for higher limits; the EU has not developed a common approach, largely due to Germany’s reluctance to approve a bailout in which it would likely pay the lion’s share.

“We need to find a common solution, as one country’s solution may be another country’s solution,” Sweden’s finance minister said, but even as six nations followed Ireland’s lead in guaranteeing some domestic bank liabilities, a strategy to ease credit tensions has not been found. The European Central Bank may cut rates to ease credit, but leaders feel a coordinated plan is absolutely necessary.