EU plan to shore up banks on horizon

A MULTI-BILLION euro European Union-wide strategy to shore up its banks could get the go-ahead in less than two weeks as the ongoing economic crisis threatens the future of the euro.

Germany chancellor Angela Merkel said she was prepared to recapitalise its banks for a second time and acknowledged that how much money they need would have to be worked out afresh giving the deteriorating situation.

She also acknowledged that the private sector involvement in the second Greek bailout may have to be increased, depending on a report from the Troika on how sustainable the massive 172% debt is. This would impact French and German banks particularly hard.