UPDATE - Merkel, Berlusconi say Europe needs coherent action (at Reuters)

BERLIN, Oct 6 (Reuters) - Germany and Italy agree that Europe needs coherent action in the face of the financial crisis, German Chancellor Angela Merkel said on Monday. Speaking at a joint news conference with Italian Prime Minister Silvio Berlusconi, Merkel said governments had to cooperate closely. "We share the opinion that the Europeans must show coherent action because we belong to a common currency area," Merkel told the news conference in Berlin. "Each country must meet its responsibility in this respect," she said. Berlusconi reiterated he wanted all European countries to set up a bank protection system. An "umbrella" or "common fund" would be the best solution for all 27 EU countries, he said.... [read full story]                    

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