by Calculated Risk on 10/12/2008 03:56:00 PM

UPDATE: From Reuters: Final statement from euro zone summit in Paris

From Bloomberg: European Leaders Vow Bank Guarantees, Bid to Stop Financial Rot

European leaders agreed to guarantee bank borrowing and use government money to prevent big lenders from going under ...

The key measures announced today are: a pledge to guarantee new bank debt issuance until the end of 2009; permission for governments to shore up banks by buying preferred shares; and a commitment to recapitalize any ``systemically'' critical banks in distress.

France, Germany, Italy and other countries will announce national measures tomorrow, Sarkozy said.

This apparently applies to all countries using the euro. Update: A reader adds:

Just to avoid any misunderstandings: tonight's meeting of the Eurogroup has no rule-making powers. In essence, it is just a political coordination forum. It is up to each Eurozone country to act. The fact that they all agreed the statement does not necssarily mean they will all do this.