But its ultraliberal beliefs has hardly changed

Europe will, in turn, set up a banking system bailout plan The idea seems to circulate in the corridors of the Elysée and Bercy and could be proposed soon, even if it divides Europeans. Whereas the Union must take its "responsibilities", the President of the European Commission, José Manuel Barroso, has called, yesterday, the twenty-seven to seek "a coordinated, clear and articulate response" to restore the confidence of the markets and citizens. This strategy should be examined Saturday in Paris at a Summit convened by the France involving the four European countries of the G8 (the France, the Germany, the United Kingdom and the Italy), José Manuel Barroso and Jean-Claude Juncker, the President of the Eurogroup. The folder will be then considered, Monday night at Luxembourg, by the Finance Ministers of the euro area, then the next day by the twenty-seven. The heads of State and Government of the Union could then endorse a first series of initiatives at the European Council to be held in Brussels on 15 and 16 October.

Among the initiatives announced by Nicolas Sarkozy in his speech of Toulon, the idea of establishing a European banking system bailout plan made its way. In an interview to be published this morning in the German newspaper "handelsblatt", the French Minister of economy, Christine Lagarde, advocates indeed a relief fund European designed to prevent any bank failure. However, yesterday, Bercy has denied categorically the information according to which Paris would like to propose a plan of 300 billion euros Saturday at the meeting of the four European countries. A spokesman for the German Finance Ministry, questioned by AFP, has, for its part, strongly rejected this idea: "The Germany don't think nothing of such a plan."

And for good reason. It appears that between Paris and Berlin the solutions advocated by saving any financial institution of bankruptcy are not the same order. Presiding the European Union until the end of the year, Paris advocates an approach to a recapitalisation of the banks in difficulty. The rescue of Dexia, mounted in two days, is the perfect illustration. Paris also noted the excellent reception by investors and savers in this plan. In addition, the French authorities consider that the European Central Bank, which supports the market of inter-bank refinancing, cannot forever without endangering the quality of its balance sheet. The solutions advocated by the France are not the taste of the Germany. Berlin is rather of a solution in place, as the plan implemented to rescue the Bank Hypo Real Estate ("Les Echos" from September 30).

Voices for French ideas

Is that, at the international level, the voices abound for advocating the French ideas. Yesterday, the Parliamentary Assembly of Europe in Strasbourg, the OECD Secretary-General, Angel Gurria, said that "in view of the exhibition of European financial institutions, it may start thinking about a systemic for Europe plan if things do not improve across the Atlantic". The day before, the Director General of the IMF, Dominique Strauss-Kahn, had agreed to the same effect by pleading for such creation.

Meanwhile, yesterday, the Commission has formally authorized the Bradford & Bingley rescue plan, repeated that of Fortis should not pose competition problems and that of Dexia will be considered "in emergency. To go quickly, Neelie Kroes, the competition Commissioner, was authorized to decide on aid for banks in difficulty without reference to the whole of the Commission. His counterpart responsible for financial services, Charlie McCreevy, long hostile to any European intervention, made against bad fortune good heart. But its ultra-liberal beliefs has hardly changed. "The lack of regulation is not in the origin of a crisis which comes from the banking sector, which is the box of the financial world", he observed.