PARIS: Group of Seven nations welcomed the $700 billion US markets bailout plan 
on Monday but there was no sign that other governments saw any need to follow 
Washington in setting up rescue packages of their own. 

"We will be in a telephone conference to consider and very probably express our 
support for the American plan," French Economy Minister Christine Lagarde told 
RMC radio in an interview, without giving more details. 

US Treasury Secretary Henry Paulson said on Sunday he was "aggressively" 
encouraging other countries to put in place similar schemes to the plan 
announced on Friday which sent global stock markets soaring. 

The world's big central banks have already joined in a coordinated move with 
the US Federal Reserve to pump hundreds of billions of dollars in extra funding 
into markets to prevent the world financial system from seizing up in a credit 
freeze. 

But US allies within the G7 club of wealthy nations appeared more guarded about 
the need to follow Washington's lead and set up funds to buy bad debts from 
struggling banks. 

"At the moment, I don't think Japan needs to launch a program similar to that 
of the United States," Japanese Vice Finance Minister Kazuyuki Sugimoto told 
reporters in Tokyo, echoing similar comments from France, Britain, Germany and 
the European Union. 

"The government thinks measures like those taken in the United States are not 
necessary (in Germany)," German government spokesman Ulrich Wilhelm told a 
regular news conference. 

However contacts have been intense as government leaders try to come up with a 
unified response to a financial crisis widely seen as the worst since the 
1930s. 

French President Nicolas Sarkozy, whose country holds the rotating EU 
presidency is visiting the United States this week for a United Nations meeting 
and is expected to talk to US officials about the crisis. 

British Prime Minister Gordon Brown said last week he was in touch with Sarkozy 
about formulating a joint EU response and a government spokesman said on 
Britain would take "whatever action is necessary in the interest of financial 
stability." 

European leaders have repeatedly said that their banks were better balanced 
than their US counterparts and do not face the dramatic problems that led to 
the collapse of Lehman Brothers and the forced sale or rescue of other Wall 
Street institutions. 

http://economictimes.indiatimes.com/News/G7_countries_pledge_to_safeguard_financial_system/articleshow/3514950.cms

You cannot teach a man anything; you can only help him discover it in himself. 
<<Galileo Galilei>>





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