Japan, EU Boost Economies as Bailout Dies

New stimulus packages announced to avert global paralysis
By Jason Farago,  Newser Staff
Posted Dec 12, 2008 7:16 AM CST
Taro Aso speaks during a press conference at the Japanese prime minister's official residence in Tokyo Friday, Dec. 12, 2008. Aso has announced a new stimulus package to boost the country's economy.   (AP Photo/Itsuo Inouye)
camera-icon View 4 more images

(Newser) – Japan and the European Union announced new measures to bolster their economies in the wake of the collapse of the US auto industry bailout. The Japanese government multiplied its bank recapitalization fund sixfold, to $131 billion, and announced an $11 billion package to save jobs. "We are working at a very high speed," said the Japanese finance minister.

Meanwhile, at the EU summit in Brussels today, leaders agreed a $264 billion stimulus package, despite a public spat between Britain and Germany. In an unusual move, the German finance minister accused Britain of "tossing around billions," which London chalked up to "internal politics in Germany." The EU is in desperate need of a boost; data released today showed that industrial output tumbled 5.3% year-on-year in October.