Ms Merkel said the damage to Europe’s biggest economy if the state had not intervened would have been “incalculable”.
The package, which was broadly similar to the bail-out announced by Gordon Brown, includes 80 billion euros to recapitalize banks, in return for which the state will take shares, and 420 billion euros in guarantees.
Ms Merkel said: “We are taking drastic action, no question about it … so that what we have experienced is not repeated.
“Our citizens will be protected by today’s package against even stronger effects (from the financial crisis). If the state had not intervened, the consequences would have been incalculable – above all for our citizens, for savers and for the economy.”
The Finance Ministry said help would be available to German financial institutions as well as German units of foreign banks.
“The precondition is that they be solvent companies,” it said. However, “in exceptional cases, needy companies that are relevant to the (financial) system also can be bolstered by the fund … if this is linked with a clear prospect of restructuring.”
Ms Merkel said banks seeking capital help would have to comply with government-set conditions which could include limits on managers’ pay and directions on credit to small and medium-sized companies.The main function of this ingredient has complex process to increase their confidence, desires, and ultimately the strength of having firm erections during an intercourse. online order for viagra Continue to drugstore For fathers, parenting may mean an affirmation of manhood; for mothers, an organic crucial Some see parenthood as a second chance, an opportunity to gratify their own unfulfilled childhood needs or cialis generico mastercard to understand dissatisfied adult ambitions. Cyaniopsia order viagra online has been spotted in a fraction of patients. These exercises can either be physical or psychological treatments or a combination of the two; this is entirely dependent on cialis online online the perceived causes.
Finance Minister Peer Steinbrueck said details of limits on managers’ pay had not yet been discussed: “But I’ll name my figure – these managers should not get more than €500,000 (£393,000) per year, and no bonuses, and no payoffs.”
Ms Merkel said she aimed to get the legislation through Germany’s two houses of parliament by Friday.
“We have today laid the first foundation stone for a new financial market constitution,” she said.
Germany has a three-tier banking system, which state-run banks, such as Sparkasse, private banks, including Commerzbank, and co-operative banks, which are similar to traditional building societies.
In recent weeks savers have flocked to deposit money in state-run banks, which they see as a safe haven.