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| Europe |
| France: President Sarkozy calls for funds to protect EU businesses |
| 2008-10-23 |
| (SomaliNet) French President Nicolas Sarkozy has called on the EU member states to set up state funds to protect European companies from the threat of takeovers by major government funds from China, Singapore or the Middle East. In a speech to the European Parliament in Strasbourg, Mr. Sarkozy pointed out that the share prices of many big companies are now at a historic low as a result of the global financial crisis. He warned that this makes them easy prey for bargain hunters. As current holder of the rotating EU presidency, the French president will attend a Euro-Asian summit in Beijing to invite China and India to take part in an international financial conference to be held shortly after the US presidential elections. Brazil, South Africa and Mexico will also receive an invitation to the talks, which have already been backed by US President George W. Bush. These countries will join the countries of the G8 to reach agreement on far-reaching reforms to the international financial system. |
| Posted by:Fred |
| #2 The problem in Europe is the banks. Capital has dried up and they need very heavy, deep and wide re-capitalization. Where will it come from and at what price (interest). Bank to bank loans are necessary and a function of interbank trading but there is nothing like a regulated banking system we have including FDIC for example. Until they come up with a recapitalization plan over and above par value of held assets then they can jaw all they want but get nothing in return. |
| Posted by: Jack is Back! 2008-10-23 09:15 |
| #1 Wasn't Sarkozy supposed to be a free-market type? |
| Posted by: Raj 2008-10-23 08:09 |