"The situation we face here in Europe is less acute" than in the US, says the EU economy commissioner

EUOBSERVER / BRUSSELS - There may be need for stricter financial monitoring worldwide, but in Europe in particular, US-style bank bailouts are not necessary at this stage, EU officials told MEPs on Wednesday (24 September).

Recent events in the financial sector are hurting the economy, as they are "of a magnitude that exceeds anything we have seen in our lifetime," EU economy commissioner Joaquin Almunia said.

However, referring to the recent decision by the US to buy $700 billion (€476 billion) of bad debt from banks and other financial institutions, he stressed that "the situation we face here in Europe is less acute and member states do not at this point consider that a US-style plan is needed."

"We are talking about a US plan, adapted for circumstances in the United States, where, it should be recalled, the crisis originated and where the financial sector has been most severely affected," the commissioner pointed out.