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France to Propose EU300 Billion Europe Bank Fund, Reuters Says

By James Hertling

Oct. 1 (Bloomberg) -- France plans to propose a 300 billion-euro ($422 billion) bank-rescue fund for the European Union at a meeting of government leaders this weekend, Reuters reported, citing an unidentified European government source.

In an interview to be published tomorrow in Germany's Handelsblatt, French Finance Minister Christine Lagarde said France would propose an EU-wide fund.

``What will happen when a smaller European Union member state is threatened with a banking failure?'' Lagarde was quoted as saying. ``It may not have the resources to save the company. This is where a European rescue package becomes a possibility.''

To contact the reporters on this story: James Hertling in Paris at [e-mail];

Last Updated: October 1, 2008 12:43 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=agDyigQUvRJc&refer=home