Banks take first steps towards saving euro

IN A co-ordinated move, the world’s major banks yesterday provided cheap dollar funding for Europe’s banks in what is seen as a first major step to save the single currency.

The emergency move by the European Central Bank, the US Federal Reserve and the central banks of Britain, Switzerland, Canada and Japan was well-received by markets and saw the euro and European shares rise.

Meanwhile, finance ministers from the 27 EU countries meeting in Brussels approved two instruments they hope will significantly increase the amount of funding the bailout fund can raise on the markets using the €250 billion left in the fund.