By ANGELA CHARLTON and EMMA VANDORE, Associated Press Writers
The pledges by Britain and the six countries that use the euro helped soothe stock markets, along with a promise by top to provide unlimited short term dollar credits.
French President Nicolas Sarkozy delivers a speech during a press conference after an extraordinary Cabinet meeting at the Elysee palace in Paris, Monday, Oct. 13, 2008. Sarkozy said his government will provide up to Euro360 billion (US$491 billion) to help banks stay afloat through the financial crisis. The measure is part of a raft of proposals agreed with other governments sharing the euro currency on Sunday to unblock frozen credit markets.(AP Photo/Christophe Ena)
The action by Germany, France, the Netherlands, Spain, Portugal, Austria and Britain came after weeks in which the governments often acted at cross purposes and sniped at each other — a piecemeal approach that failed to stop steep and frightening slides on financial markets.
“The time of each one for itself is fortunately over,”said, following a that approved France’s spending in the framework of the plan.
“United Europe has pledged more than the United States,” added Sarkozy, who has taken a lead in getting the cooperation.
The pledged money will not go into a collective pot. Instead, governments were deciding individually how much to commit to supporting their own banks under broad guidelines agreed at a summit Sunday. The sums are considered a maximum, and might not all be spent if the financial crisis eases.