EU finance ministers’ talks to focus on international crisis

A LOOMING international crisis triggered by over-risky lending by financial institutions will be central to discussions at the two-day meeting of EU finance ministers beginning today.

As the dollar decreases against the euro, markets remain turbulent and interest rates are adding to the pressure, the ministers will consider a report on using state aid to bail out banks in difficulties. However, longer-term measures are also likely to be discussed following meetings between the British, French, German and Italian finance ministers on a transatlantic agreement to help maintain global financial stability and avoid current problems caused by sub-prime mortgage lending.

Economic and Monetary Commissioner Joaquin Almunia, who is attending the meeting in the northern Portuguese town of Porto, said he hopes the meeting will help restore confidence in the market.