Sarkozy leads calls for more joint EU action

By Crispian Balmer and James Mackenzie

EVIAN, France (Reuters) - Britain urged Europe to follow its lead in guaranteeing inter-bank lending on Wednesday in concerted action to combat the global financial crisis after criticism that Europe's response has been slow and fragmented.

Simultaneous interest rate cuts by six central banks, including the European Central Bank, failed to revive world stock markets that have plunged on fears of a global recession.

But French President Nicolas Sarkozy, whose country holds the European Union presidency, said a unified response would boost the economy and the EU was also discussing joint action.

"What is very important is that everyone understands that coordinated action has more chance of success. Little by little this coordination is being set in place," Sarkozy told reporters after attending an international seminar in southeast France.

"France and the European Presidency are working on this global, coordinated response and in the hours ahead we will have concrete results," he said minutes after the central banks announced the rate cuts.

In a joint statement with Germany issued late on Wednesday, Sarkozy's office said he and Chancellor Angela Merkel had spoken and agreed to fully coordinate actions on the crisis.

Earlier, Prime Minister Gordon Brown announced a plan to inject up to 50 billion pounds to bolster the balance sheets of national banks and suggested a Europe-wide scheme to help the moribund financial sector.

Brown also wrote to G7 and European Union leaders, urging concerted action to guarantee inter-bank lending through "a set of national guarantees to a broadly similar design" to restore trust in the global market for bank funding.