The four leaders of Europe’s largest economic power decided on saturday,Oct 4th, that not to have a joint strategy to rescue the banks from the continuous vibrations because of the increasing global financial crisis.In discussion it has been said that the governments will protect their banks on their own and there will not be any common agreement between the nations. This decision is unlike in US, where the government has decided to bailout a $700billion as a package of rescue plan.In order to make a progress in Wall Street the government has taken lot of measures.There are many talks about this bailout plan and dont know how it will impact on US economic crisis.The banks around the world are facing the financial crisis and many banks have announced their downfalls.Even many banks in Europe are facing the same.So inorder to prevent these banks from further turbulence the European nations have decided to make their own decisions on their bank rescue plans.The European leaders also called for a Global economic summit by this year’s end,as happened on the waning of World war II.French President Nicolas Sarkozy, Europe’s most vocal advocate of a continent-wide response, announced that for now, he and the leaders of Britain, Germany and Italy agreed in four hours of discussions only that each country would use “its own means” to safeguard banks from collapse but would do so “in a coordinated way.”ndeed, even as the leaders discussed restoring confidence in the banking system, news reports said Germany’s $49 billion rescue last week of the Hypo Real Estate Bank may not have been enough and that a further injection of government cash is under discussion. Similarly many European nations decided for the bailout plans but very cautious on their nations economic growth.”Today was expressed with great clarity the will of our countries to guarantee citizens’ savings and preserve citizens’ confidence in the banking system, which must continue to support the real economy,” Prime Minister Silvio Berlusconi of Italy told reporters.
“We call for the holding of a summit at the earliest possible date,” they said in their statement. “Such a reform should notably be underpinned by a comprehensive framework of supervision. All parties with significant financial impact should be appropriately regulated or under surveillance.”
The four leaders also issued a call for establishing clear rules of responsibility between banking executives and regulators, on one hand, and the failure of banks under their control on the other. This also has been a Sarkozy rallying cry, a politically popular stand insisting that high-flying bankers must pay if their institutions go under.Sarkozy, speaking to reporters on the sidelines of the summit, emphasized that the financial crisis is a global problem and should be dealt with in cooperation with nations outside Europe as well, particularly the United States. “It is a worldwide problem, and it should get a worldwide response,” he said.