In a global financial crisis moving at breathtaking speed, European leaders are not afraid to turn on a dime (or deutsche mark). Just 24 hours after German Chancellor Angela Merkel criticized the government of Ireland for guaranteeing deposits for its six biggest banks, she reversed course, announcing that her government would safeguard all German bank deposits.
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As EU finance ministers met Tuesday in Luxembourg, they were expected to issue a set of principles but stop well short of coordinated action. Germany in particular is resisting joint moves, insisting it will not contribute funds to any pan-European effort. But that opposition, too, may suddenly vanish in the face of still-greater chaos. - Barbara Rudolph
