Analyst reaction to European bank plan

(Reuters) - Top European leaders holding an emergency meeting on the global financial crisis in Paris on Sunday rushed to craft a credible response before fearful world markets reopen, pledging to pump public money into banks.

According to a document circulated during the summit, two key things agreed by leaders were the commitments to provide capital and insure or directly buy into new debt issues.

Following are some economists' comments on the meeting:

ANALYST REACTION:

GEORGE SOROS

"The steps taken in Europe are very positive. European governments in the last 72 hours got religion and realized they have a serious problem to address."

"I would not dare to predict what the markets will do because we are in a fully fledged panic, and who knows how people will behave in panic. But I would rather expect that the market will turn around because people have been looking for some leadership and they are finally getting it."

"It is possible we have seen the greatest degree of panic on Friday. The policy direction now is much more constructive than it was a week ago. A lot of progress has been made in Europe and in the United States with the equity injection plan."

"I am not sure reason will prevail, but it ought to and then the peak of the panic would have been on Friday."