British Prime minister convinces the EU

The British prime minister has persuaded European leaders that it would be beneficial to follow suit with a British-style bank bailout to halt global financial turmoil.

Gordon Brown seemed convinced on his departure from emergency crunch summit talks in Paris that the EU will follow his proposal for easing the credit crunch.

Mr. Brown told reporters “I am confident after talking to my European colleagues that more liquidity, funding for the medium term loans necessary for businesses and mortgages and the recapitalisation of banks are part of their thinking as well.”

He then went on to say: “The difficulty that we have got at the moment is in restoring confidence in the banking system. What is missing is confidence itself. I believe that the action we have taken in Britain will restore that, and we will see over the next few days’ worldwide action that will also see confidence restored.”

The Chancellor of the Exchequer Alistair Darling and Mr Brown last week announced their £500 billion rescue plan to help stabilize the deteriorating banking system. The package will see the government purchase up to £50 billion worth of equity in banks and in return give large guarantees to interbank lending.

The US after talks with the G7 nations in Washington on Saturday have followed suit with similar plans. Mr Brown failed to agree a joint course of action last weekend with his Italian, German and French counterparts, but after another catastrophic week in the financial markets it seems to have focused minds.

Source: ukpress.google