A European Union summit later this month will agree decisive measures to tackle the Euro zone debt crisis, the French finance minister announced on Saturday.
The European Central Bank is offering new emergency loans to banks to help steady the Euro zone's financial crisis. The new funding, worth about 40bn Euros would enable banks to draw down one-year loans.
The Bank of England will inject 75 billion pounds to shield Britain's economy from the Euro zone debt crisis and keep a faltering recovery going, opting for an early, dramatic move to maximise the impact.
The UK has rejected a call from European Commission president Jose Manuel Barroso for a new continent-wide banking tax to help raise billions to ease the Euro zone debt crisis.
German Chancellor Angela Merkel said on Tuesday there were generally no taboos in politics but that the Euro zone crisis would not have a mechanism for ‘orderly insolvency’ of one of its members until its permanent rescue mechanism comes into power in 2013.
The loss of market confidence in economic leadership in key countries like the United States and Europe coupled with a fragile economic recovery have pushed markets into a new danger zone, something that policymakers have to take seriously, the head of the World Bank said on Sunday.