Merkel urges coordinated financial rescue

Merkel urges coordinated financial rescue

Berlin: Coordinated national rescue efforts for the financial markets are needed to restore confidence in the world economy, German Chancellor Angela Merkel said in comments published Sunday.

“Only an act of the state can bring back the needed trust," Merkel told Bild am Sonntag newspaper in an interview Saturday after meeting with French President Nicholas Sarkozy.

“In doing that it is important that instead of every country acting alone we coordinate in Europe and internationally, and then implement the measures according to national needs," she said. “We are doing this not in the interest of the banks, but in the interest of the people."

Merkel and Sarkozy on Saturday rejected the notion of creating a common financial rescue fund for Europe.

Euro-zone leaders were to come together Sunday in Paris to discuss the financial-sector crisis.

Merkel’s Cabinet is expected on Monday to pass a rescue package for Germany, which will then have to go to parliament for approval.

The chancellor has refused to comment on reports that the government is considering a British-style rescue plan that would see it partially take over some banks. German media have reported the package could cost as much as ($543 billion), but Merkel has refused to confirm any details.

Germany has helped rescue one lender and has pledged to guarantee private bank accounts, but has offered no wide-ranging financial bailout.