The Prime Minister emerged from talks in Paris last night confident that fellow EU leaders will ensure the banking system through medium term loans and the recapitalisation of banks.

Countries using the Euro currency met in the Elysee Palace to discuss ways of restoring confidence in the banking system.

The PM believes that the action taken by the British Government will restore confidence and that similar action around the world will produce the same result.

The International Monetary Fund has also expressed hope that the situation would be stabilised by the EU move, which comes after the US signed up to a similar approach.

Mr Brown said that it was an important moment for the world economy.

“The eyes of the world are now looking to governments to help restore confidence in the financial market.

“Decisions that we make in the next few days are decisions that will effect us for many years ahead.”

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