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US treasury secretary Henry Paulson (r) visiting the European Central Bank in July (Photo: ECB)

France and Germany at odds over EU 'Paulson Plan'

France believes EU-level measures may have to be cobbled together to aid banks in smaller member states, while denying rumours of a €300 billion package. But Germany has indicated it would not support any European "big-bang" deal.

French finance minister Christine Lagarde has told a German paper that a "safety net" would be needed to support smaller countries in Europe "threatened with banking failures."

"What happens if a smaller EU state is hit by a looming bank collapse? Maybe ...

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US treasury secretary Henry Paulson (r) visiting the European Central Bank in July (Photo: ECB)

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