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EU heads hold bank crisis talks EU heads hold bank crisis talks
(20 minutes later)
The leaders of France, Britain, Germany and Italy are holding a mini-summit in Paris on the world financial crisis. Europe's biggest economies will work together to support the troubled financial system, their leaders say.
French President Nicolas Sarkozy, hosting the meeting, hopes the talks will forge a common European approach. The leaders of France, Britain, Germany and Italy met in Paris to discuss the financial crisis.
He is expected to propose better co-ordination between EU governments ahead of next week's G8 meeting in the US. They agreed that each government would act according to its own means but in co-ordination with other countries.
Ahead of the talks, UK Prime Minister Gordon Brown said he wanted the early release of a 15bn euro (£12bn; $21bn) fund to help small businesses. No pan-European response to the credit crunch - along the lines of the US financial rescue plan - was agreed.
BBC Europe editor Mark Mardell says that going into the meeting, Mr Sarkozy had high hopes that he could persuade his fellow EU leaders to agree to something along the lines of the US financial sector rescue plan.
However, the Germans and Mr Brown seemed less keen on the idea, our correspondent says.
'Trial by fire''Trial by fire'
France wants countries to agree to intervene where necessary to protect European banks. The head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, had urged the EU to take co-ordinated action, saying the financial crisis was presenting Europe with a "trial by fire".
French Prime Minister Francois Fillon - describing the world as being "on the edge of the abyss" - said France would propose measures to unfreeze credit and co-ordinate economic strategies. It has to be indicated to the markets... that European countries will not react as every man for himself Dominique Strauss-Kahn, IMF head It has to be indicated to the markets... that European countries will not react as every man for himself Dominique Strauss-Kahn, IMF head
The head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, urged the EU to take co-ordinated action, saying the financial crisis was presenting Europe with a "trial by fire".
He held talks with Mr Sarkozy before the EU leaders' meeting and said that although the EU was a more complex organisation than the US, Europe needed to take "concerted collective action".He held talks with Mr Sarkozy before the EU leaders' meeting and said that although the EU was a more complex organisation than the US, Europe needed to take "concerted collective action".
He said: "It has to be indicated to the markets... that European countries will not react as every man for himself."He said: "It has to be indicated to the markets... that European countries will not react as every man for himself."
He also said he would be scaling back his world economic growth forecasts.He also said he would be scaling back his world economic growth forecasts.
European Central Bank chief Jean-Claude Trichet and the chairman of the eurozone group of finance ministers, Jean-Claude Juncker, are also attending the four-hour meeting. European Central Bank chief Jean-Claude Trichet and the chairman of the eurozone group of finance ministers, Jean-Claude Juncker, also attended the meeting.
The BBC's Alasdair Sandford, in Paris, says one source is quoted as saying there may be a call for greater co-ordination of deposit guarantee schemes.
But he adds that after the recent divisions, it is far from clear what will emerge.
Germany and UK scepticalGermany and UK sceptical
Germany has made its opposition to any co-ordinated European bail-out plan known ahead of the meeting. Ahead of the meeting, Germany had made its opposition to any co-ordinated European bail-out plan .
Mr Brown is also sceptical of the need for any Europe-wide plan. UK PM Gordon Brown was also sceptical of the need for any Europe-wide plan.
But before leaving for the meeting, Mr Brown said a fund created by the European Investment Bank to be spread over two years to provide loans for small businesses should be made available immediately.
The fund should be released earlier than planned "so that small businesses in our country and the rest of Europe can get money immediately so that they can continue to employ staff and continue to provide services", Mr Brown said.
The president of the European Parliament has criticised the summit, warning that the leaders of Europe's four largest economies have no power to decide for the entire European Union.The president of the European Parliament has criticised the summit, warning that the leaders of Europe's four largest economies have no power to decide for the entire European Union.
Calls for European action follow the bail-out of both Bradford and Bingley in the UK and Fortis Bank by the governments of Belgium, Luxembourg and the Netherlands.Calls for European action follow the bail-out of both Bradford and Bingley in the UK and Fortis Bank by the governments of Belgium, Luxembourg and the Netherlands.