LONDON (Reuters) – Japan and Europe sought on Friday to prop up their teetering economies after a $14 billion rescue package for America’s top auto makers collapsed, deepening the worst financial crisis in 80 years.

In a further blow to recovery prospects, the head of the World Trade Organization told ambassadors there was no political impetus to call a ministerial meeting on a global trade deal.
The G20 rich and emerging nations called last month for an outline deal by the end of 2008 to help counter the financial crisis by warding off protectionism. But high-level political will failed to filter down to the negotiating table in Geneva.
The U.S. bailout’s failure in late-night Senate talks will raise fears of an industry collapse that would jeopardize millions of jobs and have knock-on effects worldwide. The car firms say one in 10 U.S. jobs rely on the sector.
Japan expanded its stimulus plan -- pledging to increase spending to counter rising unemployment and to cut taxes on purchases of low-emission cars -- as well as swelling a war chest for bank rescues to 12 trillion yen ($131.1 billion) from 2 trillion.
Tokyo has already announced a package of economic measures worth 27 trillion yen ($295 billion), which included 5 trillion yen in new spending and featured payouts to families, tax breaks on mortgages and relief for small firms.
------------ EU masks differences
European Union leaders sealed a 200 billion euro ($264 billion) stimulus package, which had exposed deep differences between Britain and Germany.
Both the euro zone and Japan are already officially in recession.
Skeptics say the EU plan rests largely on national government plans already announced. But leaders will be relieved after an unusually public spat, with Berlin accusing London of ‘tossing around billions’, including a value-added tax cut. A decision on whether to prolong reduced rates of sales tax on local services, which Germany had opposed, was deferred until March.
British Foreign Secretary David Miliband said there was no rift but added that German domestic politics were at play before elections next year in Germany.
“What you have got is clearly internal politics in Germany,” he told BBC Radio.
The euro zone clearly needs a boost -- data on Friday showed industrial output dived 5.3 percent year-on-year in October.
A failure of world trade talks would bring a new element to a crisis born of a U.S. housing meltdown, which led to bank failures and has now pushed much of the world into a recession which many experts say will be long and painful.
Analysts say it will be much harder to reach a deal next year when the world economy will already be in a much worse state, despite possible impetus from a new U.S. president.
But Lamy left leaders, such as British Prime Minister Gordon Brown who has pushed for a deal, room to save the talks over the weekend.
“Leaders have expressed a desire but this has not translated into enough will at this stage,” Lamy told key WTO ambassadors.