Australia's top economic and political minds are meeting this weekend to prepare a package of domestic measures to stave off further economic panic before the stock markets open tomorrow.
Fairfax newspapers say the two-day meeting, urgently convened by Prime Minister Kevin Rudd in Canberra yesterday morning, also helped prepare an Australian response for a bigger international meeting in Washington today of 20 top countries, including Australia.
Fairfax says measures expected to inject confidence into the financial sector may include a broadening of the Financial Claims Scheme, following recent decisions by foreign governments about similar schemes.
Legislation for the scheme to guarantee bank deposits will be introduced into Parliament this week. The government had flagged a cap on guaranteed deposits of $20,000, but the weekend meeting could lift that limit.
A spokesperson for Mr Rudd said the government continued to examine the most appropriate response to a "possible global recession", including its nation building agenda.
In a telephone hook-up in the cabinet room, Mr Rudd, Families Minister Jenny Macklin and a host of senior government officials discussed options with Deputy PM Julia Gillard and Finance Minister Lindsay Tanner, who were streamed by phone from Melbourne, and Treasurer Wayne Swan from Washington.
The heads of the departments of Prime Minister, Treasury and Finance attended in person, along with their top officials and Mr Rudd's senior advisors. The meeting disbanded after an exhaustive five hours, and will reconvene today.
Before the meeting, Mr Rudd talked with US President George Bush. They agreed the two countries should unite to press for "co-ordinated and prompt" global action.
Australia has been asked to be part of a global action plan to unfreeze credit markets and stop the selloffs on panicked sharemarkets, as part of an all-out assault being co-ordinated by US Treasury Secretary Hank Paulson which includes the US government buying shares in its banks.
