Leaders around globe welcome US bailout plan

PARIS: Leaders of some of the world's biggest economies on Saturday welcomed US lawmakers' approval of a 700-bn-dollar Wall Street rescue plan, calling it a responsible and necessary measure.

"I am very happy" about the US bailout plan, said French Economy Minister Christine Lagarde. "It was necessary to do it."

In Brussels, EU Commission chief Jose Manuel Barroso said US lawmakers had "shown responsiblity" in tackling the financial crisis, triggered in large part by the US subprime mortgage meltdown.

"By approving the Troubled Asset Relief Program, the US legislators have shown responsibility," said Barroso, adding that the 27-nation European Union had "taken its responsibilities throughout the turmoil and continues to do so."

The US House of Representatives approved the revised 700-bn-dollar Wall Street bailout Friday, on its second try, bowing to intense pressure to help avert a global economic crisis.

President George W Bush signed the bill and Treasury Secretary Henry Paulson pledged to "move rapidly" to implement the plan, in the largest US government economic intervention since the 1930s Great Depression.

Asian economic powerhouse China said its government "has been closely following the developments of the US financial crisis and its impact," the People's Bank of China spokesman was quoted as saying by state media.

While hailing the adoption of the US rescue plan, it also "hoped that it would be implemented as soon as possible and achieve positive results," the central bank spokesman said.

"China and the United States of America share common interests in stabilising a stable financial market," he said.

The bailout creates a multi-bn-dollar federal programme that gives the US Treasury power to buy up toxic mortgage debt which has been choking the financial industry.

The US-born financial crisis, which has led some EU nations to devise their own bailout packages for ailing banks and financial groups, was to be the subject of an emergency meeting in Paris Saturday of the leaders of Europe's four biggest economies - Britain, France, Germany and Italy.