As of November, the European Union’s official stance was that they had no plans for a rescue package that even resembled the plans of the United States bailout package implemented by Paulson. The plan constructed by the United States in response to the fallout of the subprime mortgage market and many investment banks, was seen as much too elaborate for the European Union's needs. However, this was despite a drastic stressing of the Union’s entire financial banking system and hard evidence of an impending long lasting recession. The fallout of the subprime mortgage market and investment banks was more far reaching than previously expected. The financial ripples were felt allover the world. In spite of this, they still held that their situation on the European continent was not as acute as what was being experienced in the United States, and therefore did not need the same type of plan.
The argument behind this stance was that Europe did not have subprime mortgages or investment banks. However, what originally began in these markets spread like the legs of a cancerous disease to encompass other areas of the financial market. Stocks have plummeted, large and old banks have fallen. Nonetheless, less cohesive a union than the states in the United States, the EU delegated the official decision to the individual states (countries) of its body.
As the loom of financial disaster encroached on their respective financial empires, the countries of the EU all began to cry out for some sort of action to be taken. This December, their pleas were headed.
There was absolutely no dissent among European leaders as they met at an emergency summit in Brussels and agreed unanimously to two hundred billion euro economic bailout package. It did not take too terribly long to see that previous cautionary moves were not enough to save the European Union, and that their economic futures depended (much like the United States) on serious action taken to rescue its financial institutions.
Previously, Great Britain had attempted its own economic stimulus package, sinking twenty billion pounds of that country's funds into the economy as a sort of drastic measure to try and curb the negative impact of the current financial situation.
The German chancellor ridiculed these actions by Great Britain as being too little by far. His opinion was that the money was placed unwisely and that it would only further damage the economy of Great Britain by sinking the government and its people further into financial debt.
The European Union has spoken out and said at this summit, that they are prepared to take any necessary action to deal with the global economic downturn before it devastates them irrevocably. They firmly have rejected the previous “does nothing” approach that asked that the market recover naturally and allow the recession to take its course and do away with what it may (a very Darwinist outlook).
This two hundred billion euro stimulus package is designed to help retrieve the European continent from the dredges of recession. The European Union has taken its stand and spoken out, saying, “We have a responsibility to our people.”