Although the subprime mortgage crisis originated in the United States, the bank failures have spread, affecting markets in European countries. The governments of England and Germany have had to bail out or nationalize several banking and real estate institutions, and several countries in the European Union are facing similar difficulties.CNN: Europe stops short of huge financial bailout (October 5, 2008)

European Union leaders have proposed guaranteed bank refinancing for any country that uses the Euro as currency. The measure would be temporary and be in effect through the end of 2009. The proposal will be put to the full 27 members of the EU the week of October 12 for final approval.CNN: European banks get government help (October 12, 2008)

A summit was held on October 4, 2008, among leaders from Britain, France, Italy and Germany over the crisis. They pledged to work together to "speed up" a $41.5 billion package to help businesses, but remained divided on whether a joint EU bailout plan would be wise.CNN: Europe stops short of huge financial bailout (October 5, 2008) Germany meanwhile guaranteed the safety of its citizens' private bank accounts during the crisis.CNN: Europe: Scramble on to rescue big banks (October 5, 2008)