Japan approved extra funding and Germany pledged new measures today to confront a financial crisis that has toppled banks, wrecked world growth and now played a part in the demise of Belgium's government.
Tokyo has joined governments worldwide in pledging hundreds of billions of dollars of fiscal stimulus to lessen the impact of the crisis on their economies, many of which, Japan's included, are already in recession.
Its extra 4.79 trillion yen budget, approved by cabinet today, will help finance two already-unveiled spending packages totalling 10 trillion yen.
Chancellor Angela Merkel said Germany would take "a further step" in January to boost its economy, having previously limited herself to saying government leaders would meet in the new year to review the situation.
In neighbouring Belgium, King Albert consulted political leaders after the government collapsed following its botched attempt to bail out financial group Fortis.
Prime minister Yves Leterme tendered his government's resignation on Friday after a report by the Supreme Court found signs of political meddling to sway a court ruling on the future of the bank, a victim of the credit crunch.
The king, who under the constitution must decide whether to accept the resignation, held successive talks with the heads of the five ruling-coalition parties until 2am on Saturday.
Consultations were to continue later in the day. Belgian media said there was little chance of Leterme staying in power.
Reuters