PARIS: Fifteen European Union leaders agreed on a joint strategy to end the hemorrhaging of market confidence by underwriting inter-bank loans and safeguarding financial institutions from collapse.

In a bid to prevent further meltdown when markets resume trading on Monday, French President Nicolas Sarkozy persuaded the 15 members of the euro zone bloc to adopt a common approach to contain the worst crisis since the 1929 crash.

"The crisis has over the past days entered into a phase that makes it intolerable to opt for procrastination and a go-it-alone approach," Sarkozy told a news conference at the end of the summit.

"This is indeed a joint action that we are undertaking. This plan addresses all aspects of the financial crisis," he added.

Sarkozy said that while individual euro zone countries would unveil the scope of their own domestic plans on Monday; all had agreed a specific series of measures designed to restore confidence in the economic system.

"The time for decisions on figures is tomorrow," Sarkozy added.

According to a joint statement released at the end of the gathering, the leaders committed themselves to guaranteeing new medium-term loans between private banks in a bid to kick-start lending.

This offer would stand for an "interim period" and would see governments underwriting new loans of up to five years "on appropriate commercial terms" by a variety of means, including issuing securities.

The new procedures will be in place until December 31, 2009.

German Chancellor Angela Merkel said the agreement between the euro zone countries' leaders would send an important signal to panic-stricken markets but said it should not be seen as a blank cheque.

"The capital that we are providing to banks comes with conditions, however, because taxpayers have the right to expect that if they are contributing to the stability of the financial system that this will be honored," she said.

Merkel confirmed that the full details of her government's blueprint would be unveiled on Monday.