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Europe reacts to the global crisis

Tue, Oct 7 2008, 09:11 GMT
by Marina Schiaffino

FXstreet.com

European countries are planning to take their first specific joint actions in order to protect the small private investor from the financial crisis. The finance ministers of the Euro Zone reached an agreement, which still must be approved by the EU27, to raise the maximum bank deposits guarantee to 40,000 euros.

According to the Commissioner of Economic and Monetary Affairs, Joaquin Almunia, if the proposal receives this support, the European Commission will work on another initiative to raise the amount even more. They will also try to make those changes effective as soon as possible.

The Commission's decision follows the unilateral measures taken by several European countries to provide full guarantee to the funds deposited in their own territory. These countries tried to give some stability and confidence to the savers. The EU now wants to unify these measures and establish a more coherent system.

Ireland was the first to adopt such measure, followed by Greece, Sweden, Denmark, Germany, Austria and Portugal. The Spanish government also announced that it will raise the guaranteed amount soon.

• How did we arrive to this point? Find out in our older special coverage: Will there be a European Bailout plan?
  
  

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Published on  Tue, Oct 7 2008, 14:14 GMT