This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk/7652459.stm

The article has changed 7 times. There is an RSS feed of changes available.

Version 4 Version 5
UK seeks £12bn EU business fund PM wins backing for £12bn EU fund
(about 1 hour later)
UK Prime Minister Gordon Brown is to propose a £12bn EU fund to help keep small businesses afloat during the economic crisis. UK Prime Minister Gordon Brown has won approval for his proposal for a £12bn EU fund to help keep small businesses afloat during the economic crisis.
He will put forward the plan at an emergency summit of European leaders in Paris which will look at measures to halt the worsening credit crunch. He put forward the plan at an emergency summit of European leaders in Paris which will looked at measures to halt the worsening credit crunch.
Mr Brown said all countries needed to "work together to clean up the system" to find a "global solution". Mr Brown said a cohesive approach was needed to find a solution.
The meeting was called French President Nicolas Sarkozy. Europe's biggest economies have promised to work together to support financial institutions.
The French government currently holds the EU presidency. However, they have stopped short of forming a joint bail-out fund like that the $700bn earmarked to rescue the US financial sector.
The prime minister has joined the leaders of France, Germany and Italy as well as the head of the European Central Bank and the President of the European Commission at the summit. The meeting was called by French President Nicolas Sarkozy, who currently also holds the EU presidency.
Delegates are expected to look at how they can encourage confidence by strengthening co-operation within Europe and ensuring the financial markets function properly in the future. The prime minister joined the leaders of France, Germany and Italy as well as the head of the European Central Bank and the President of the European Commission at the summit.
We have got to show how we can do more in Britain and across Europe to help small businesses, as well as households Prime Minister Gordon Brown class="" href="/1/hi/business/7648249.stm">EU leaders to discuss bank crisis Delegates looked at how they could encourage confidence by strengthening co-operation within Europe and ensuring the financial markets function properly in the future.
Speaking at 10 Downing Street before his departure for Paris, Mr Brown said: "I will be proposing to the leaders that we work together to clean up the system, both in America and Europe where there have been problems. We're doing everything that we can to ensure the security and stability that families and businesses need Prime Minister Gordon Brown class="" href="/1/hi/business/7648249.stm">Europe agrees bank crisis action
"That we call a timetable for international meetings to agree the changes that will open up those areas which have been far too often closed and not transparent." Speaking at 10 Downing Street before his departure for Paris, Mr Brown proposed "cleaning up the system" which he claimed had fallen prey to "irresponsibility".
Mr Brown said the the small business fund will keep those companies afloat and enable them to get money immediately to continue to pay staff and provide services to prevent the situation from worsening. This was something that was echoed by President Sarkozy in the post-summit news conference, who said there were plans to "rebuild the financial system" and it was announced a college of regulators will be set up.
He added: "We have got to show how we can do more in Britain and across Europe to help small businesses, as well as households, through what is a difficult economic time but where I believe Britain can lead the way out of the difficulties." Mr Brown was arguing for the early-release of finance from a fund set up by the EU's European Investment Bank to help small businesses.
'Edge of abyss' At the news conference, Mr Brown said it would help keep struggling companies afloat and enable them to get money immediately to continue to pay staff and provide services to prevent the situation from worsening.
In the US, $700bn has been earmarked to rescue the US financial sector. The prime minister said: "In the UK we're doing everything that we can to ensure the security and stability that families and businesses need.
It is thought a similar move could be on the cards in Europe although this has been denied by Mr Sarkozy's office. "It is right that the same message is coming today from all our European G8 partners."
Mr Sarkozy is expected to propose improved co-ordination between EU governments. 'Edge of Abyss'
French Prime Minister Francois Fillon - who has described the world as being "on the edge of the abyss" - has said France would propose measures to unfreeze credit and co-ordinate economic strategies. All the European leaders said they were pleased with the progress made at the meeting but German Chancellor Angela Merkel said she was "not satisfied" with Ireland's unlimited guarantee on bank deposits, saying all countries should have a consistent approach.
Germany has made its opposition to any co-ordinated European bail-out plan known before the meeting. Mr Brown said he believed Britain could lead the way out of the difficulties
However, Gordon Brown said he remained confident that the small business fund, would assure liquidity, which would in turn preserve economic confidence and stability.
The summit agreed the that working together was crucial to beating the credit crunch which saw the world - as French Prime Minister Francois Fillon described it - as being "on the edge of the abyss".
Mr Brown said: "We must do more to co-ordinate our response in times of crisis."
He added: "I believe that the co-ordination that we are showing across Europe will now be repeated by the international meetings that we are proposing that will involve all the major countries of the world."