EU countries agree on financial battle plan

Countries that use the Euro currency held a summit in Paris and came up with a rescue plan giving banks liquidity and guaranteeing inter-bank lending.

The leaders also agreed to inject capital in banks by means of preference shares in a bid to keep banks from going into bankruptcy.

Each country will take slightly different approaches, because they have different laws and banking regulations, but they have pledged that their actions will be compatible.

French president, Nicolas Sarkozy, said governments will buy into banks to boost their finances and guarantee inter-bank lending.

British prime minister, Gordon Brown, said after the meeting he believes the next few days will restore confidence in the banking system.