The financial crisis that struck in recent weeks has spread well beyond the borders of the United States. Countries around the world have been hit hard by the worst financial crisis since the Great Depression. In the wake of the $700 billion economic bailout plan approved by the U.S. government, countries across Europe have announced massive financial rescues of their own.
Germany has offered its banks over $600 billion in assistance. France has approved about $500 billion to support bank lending and provide capital for struggling banks. Britain, Spain, Austria, and Italy have all approved similar bailout packages.
The governments and financial institutions are hoping that the bailouts will give investors and consumers increased confidence, so that they will continue the investing and money-spending that is necessary to keep the economies of the world running. French President Nicolas Sarkozy, who is the current president of the European Union, has called for a world financial summit, which would include leaders from the largest economic countries, to be held in November.
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(Source: BBC, August 4, 2008) - European Nations Unveil Crucial Bank Rescues
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(Source: Reuters, October 13, 2008) - Sarkozy Wants Sovereign Fund To Fight Crisis
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(Source: Reuters, October 21, 2008) - Timeline: Global Credit Crunch
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(Source: BBC, October 20, 2008)