French finance minister Lagarde has not confirmed talk of a EUR 300 bln bank rescue but says she is still working with EU partners on a response to the financial crisis, according to Reuters.
Germany quickly batted down speculation of a package in which the big European economies would spend up to 3% of GDP on the plan. It looks no easier to herd cats in Europe than in Washington. If anything like the initial plan is enacted it will up the odds of success of the US plan. The combined plans would soak up over $1.1 trln in bad assets.
EUR/JPY is giving back some of its games as the package remains an open issue.
Update: Lagarde says “there is no such thing” as a EUR 300 bln bailout plan for the EU…
