Merkel Willing to Back Plan to Recapitalize European Banks

German Chancellor Angela Merkel has said that Berlin is prepared to recapitalize the nation’s banking sector and is open to discussing a European Union-wide plan to shore up the financial sector, should such a move become necessary.

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Merkel said that the specifics of such a plan should be left to the technical experts while speaking in Brussels after a meeting with the European Commission president, José Manuel Barroso, but she urged leaders to coordinate their efforts. “If there is a common view that banks aren’t sufficiently capitalized for the current market condition” a financial firewall should be built, said Merkel.

“I think it is right if we have a joint approach to all of this,” Merkel added. “Germany is prepared to move to recapitalisation. We need criteria. We’re under the pressure of time and I think we need to take a decision quickly.”

Merkel stressed her belief in the importance of a concerted effort on behalf of both Europe and the U.S., hoping they could work together. “What’s important here is that America and Europe are in proper communication, because that’s how we’re going to get the results we need, rather than just directing critical remarks at each other,” she said.

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Merkel’s comments follow an International Monetary Fund report, released this morning, calling for a forced, across-the-board recapitalization of all European banks.