Times Online: A United Europe takes Charge: Germany and France lead €1 trillion European bailout - by Charles Bremner and David Charter

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A United Europe Takes Charge: Germany and France lead €1 trillion European bailout - by Charles Bremner and David Charter"

Germany and France put mountains of cash on the table today as they led continental Europe in an offensive to rebuild trust in banks with state guarantees worth over €1trillion (US dollars 1.36 trillion). Chancellor Angela Merkel and President Sarkozy, chiefs of the two big euro-zone economies, also joined Gordon Brown in calling for a deep reform of the global financial system after the dust settles from the autumn earthquake. “When calm returns, those who have sinned will be punished,” Mr Sarkozy said.

Mr Sarkozy was gratified, he said, that “United Europe has done more than the United States in terms of the sums committed” to tackling the crisis. Europe must now convince the United States of the need to “rebuild the foundations of capitalism”. France wanted to support entrepreneurs and not speculators, he said. Like Mr Brown, Mr Sarkozy has been praised at home and abroad for his handling of the crisis. “Super-Sarko”, a politician who thrives as a crisis-manager, landed the role of chief European fixer because France holds the rotating six-month Union presidency until next January.Both Mrs Merkel and Mr Sarkozy said that banks receiving capital would have to comply with conditions, including limits on management pay and requirements to keep credit moving to small and medium-sized business.“We have today laid the first foundation stone for a new financial market constitution,” Mrs Merkel said after her Cabinet settled the plan, which should be passed by both houses of Parliament by Friday.

Note EU-Digest: If there was any better example for proving that a United Europe works and has what it takes, then this financial crises is the proof. Euro Sceptics eat your heart out.