Japan, Germany, Canada pledge new measures, Belgian gov't fails

Japan's extra 4.79 trillion yen ($54 billion) budget, approved by the Cabinet on Saturday, is designed to help finance tax cuts for homeowners, loans to small businesses and aid laid-off workers.

Last week, the government increased its economic stimulus plan by $255 billion.

In Canada, Prime Minister Stephen Harper unleashed C$4 billion ($3.3 billion) in emergency loans to the Canadian arms of Detroit's ailing automakers to keep them operating while they restructure their businesses. The lifeline comes just a day after the White House unveiled a $17.4 billion package to shore up Detroit's auto industry.

Harper also announced two new federal measures to support the overall industry -- one to benefit automotive suppliers and a second to help consumers get credit to buy cars.

German Chancellor Angela Merkel said her country would take "a further step" in January to boost its economy, having previously limited herself to saying government leaders would meet in the new year to review the situation.

In her weekly podcast, Merkel said Berlin would do everything possible next year to keep the economy -- already in recession -- on a sound footing, after passing a stimulus package two weeks ago that was criticized as insufficient.

In neighboring Belgium, King Albert consulted political leaders after the government collapsed following its botched attempt to bail out financial group Fortis.

Prime Minister Yves Leterme tendered his government's resignation on Friday after a report by the Supreme Court found signs of political meddling to sway a court ruling on the future of the bank, a victim of the credit crunch.