Brussels - Xinhua
President of the European Commission Jose Manuel Barroso Thursday called on European Union (EU) member states to take a coordinated approach to recapitalize banks. \"We are now proposing to the member states to have a coordinated action to recapitalize banks, so to get rid of toxic assets they may have,\" Barroso said during a live interview with Youtube. Barroso made the remarks after Franco-Belgian bank Dexia became the first European lender to be dragged down by high exposure to Greek debts. It is feared that more banks will follow the suit of Dexia due to their high exposure to heavily indebted eurozone countries. The International Monetary Fund (IMF) Wednsday urged the EU to swiftly recapitalize its banks to stabilize markets. IMF Europe director Antonio Borges estimated that the cost of recapitalizing European banks ranges from 100 billion to 200 billion euros. German Chancellor Angela Merkel said during a visit to Brussels on Wednsday that Germany is prepared to recapitalize banks, adding EU leaders may discuss a Europe-wide plan at their summit meeting in mid-October.