Gordon Brown to propose £12bn EU fund

[questionmark]

Financial crisis: Gordon Brown to propose £12bn EU fund to help small businesses

Gordon Brown is to propose a £12 billion European Union fund to help small businesses deal with the financial crisis.

The Prime Minister made the announcement ahead of a meeting with fellow European leaders in Paris.

Mr Brown will join the leaders of the four EU nations belonging to the G8 group of industrialised countries - France, Germany, the UK and Italy - as well as the head of the European Central Bank and the president of the European Commission.

Speaking at 10 Downing Street before his departure for Paris, Mr Brown said: "We are seeing, in addition to the national action we are taking, that these global problems about oil, about the credit crunch, need global solutions.

"So I will be proposing to the leaders I meet in Paris today that we work together to clean up the system, both in America and Europe where there have been problems, that we call a timetable for international meetings to agree the changes that will open up those areas which have been far too often closed and not transparent.

"And I will also be proposing a £12 billion small business fund, so that small businesses in our country and the rest of Europe can get money immediately so that they can continue to employ staff and continue to provide services.

"I think in the next few weeks we have got to show how we can do more in Britain and across Europe to help small businesses, as well as households, through what is a difficult economic time but where I believe Britain can lead the way out of the difficulties."

The scheduled four hour meeting has been called by Nicolas Sarkozy, the French president , who currently holds the EU's presidency.

The meeting is intended to show solidarity between Europe's "big four" - but divisions are growing over how far to go in regulating the money markets and bailing out failing banks and finance houses.

The meeting will welcome Washington's approval last night of a massive $700 billion (£380 billion) rescue package to restore confidence in Wall Street.

But suggestions of a similar central pot of cash to be set up for the 27-nation EU bloc have received such a poor response that French ministers are denying it was their idea.

Only the Dutch seem to approve of the notion of getting 27 countries to contribute to a £250 billion fund to be used when one of the member states' key banks or financial institutions face serious trouble.

Mr Sarkozy has now denied suggesting the idea - which is just as well as the UK, Germany and the EU Commission in particular are strongly opposed.

"It's unworkable," said one EU official on the eve of the meeting. "How on earth would you decide how much each country would contribute to the fund, exactly under what circumstances it would be used, and which financial collapses would be considered deserving cases?

Instead, the four leaders are likely to look at ways of strengthening co-operation within Europe to prop up confidence and ensure proper functioning of financial markets in future.

Full story, source: The Telegraph

[Bill Hill]

The EU's completely corrupt..

Everyone gonna take a slice, from the Mafia, corrupt politicians, to sincere but deluded monsieur merco and his belgium chocolate willies...

"moi needs Euro loan... zee nees more money non? It vill be a great success... non?"