Europe Decides No Coordinated Bailout
10/06/08
In Europe’s summit in Paris over the weekend, leaders of Europe’s four largest economies, Germany, UK, France and Italy, pledged to take all steps necessary to ensure financial stability and to coordinate together. The summit, however, decided that they would not coordinate a pan-European rescue fund, which was opposed by Germany and the UK and no other systemic responses were discussed. While the summit was a means to restore confidence, the market responded negatively causing the worst equity slump in Europe in over 20 years. Euro fell nearly 2% to a low of 1.3441 against the U.S. dollar, a level not seen since August 2007.