Financial Markets

The answer is, as everyone knows, that this problem is affecting every part of the world. The problem started in the American sub-prime market last year; it spread within weeks to this country and it has subsequently affected every other country. Even countries that believed that they did not have a problem can now see that they are being affected by it. A global problem needs a global solution, but we will play our part here in the UK. We have been anxious to take action, together with other countries. There has been no reluctance on the part of others. At the weekend, I was struck by the fact that many Ministers recognised that they, too, needed to take action. In some ways, the challenge for everyone is to make sure that we stay ahead of all this. Some things that might have been unthinkable even a month ago, and certainly six months ago, need to be thought about now because they may actually provide a way through.