Sarkozy denies proposing 300-billion-euro bailout

PARIS: President Nicolas Sarkozy flatly denied on Thursday that France had proposed a 300-billion-euro fund to shore up European banks, as had been claimed by a European official in Berlin.

Sarkozy denied to reporters that France had suggested "the amount and the principle" of such a fund.

Germany on Wednesday rejected the idea of a Europe-managed fund that would provide a lifeline for ailing banks hit by the financial storm.

The Netherlands on Thursday said they had come up with the idea and that it was under discussion with EU partners.