European leaders agree on banks rescue plan

To tackle the current banking crisis, European leaders have agreed and plan as they announced that no big bank would be allowed to declare itself bankrupt.

In their meeting in Paris, the European leaders announced that they would guarantee loans between banks by the end of 2009 and keep money in them for buying preference shares.

French President Nicolas Sarkozy said in his address that the European countries are taking unprecedented steps to tackle the current crisis.

Rescue plan related news came from Mr. Sarkozy after 15 countries’ leaders talks of the euro currency zone. France holds the rotating presidency of the European Union at present.UK Prime Minister Gordon Brown (not a eurozone club member) also attended parts of the talks. A similar plan has been announced by Britain last week.

Sarkozy told that EU leaders had agreed a framework in which individual countries could inject capital into their banks through means of preferring shares.

He also added that governments of other European countries including Germany, Italy and France would present their individual plans on Monday.