UK Prime Minister Gordon Brown is to propose a £12bn EU fund to help keep small businesses afloat during the economic crisis.

He will put forward the plan at an emergency summit of European leaders in Paris later who will look at measures to halt the worsening credit crunch.

Mr Brown said all countries needed to "work together to clean up the system" to find a "global solution".

The meeting was called by EU and French President Nicolas Sarkozy.

The prime minister will join the leaders of France, Germany and Italy as well as the head of the European Central Bank and the President of the European Commission.

Delegates are expected to look at how they can encourage confidence by strengthening co-operation within Europe and ensuring the financial markets function properly in the future.

We have got to show how we can do more in Britain and across Europe to help small businesses, as well as households Prime Minister Gordon Brown EU leaders to discuss bank crisis

Speaking at 10 Downing Street before his departure for Paris, Mr Brown said: "I will be proposing to the leaders that we work together to clean up the system, both in America and Europe where there have been problems.

"That we call a timetable for international meetings to agree the changes that will open up those areas which have been far too often closed and not transparent."

Mr Brown said the the small business fund will keep those companies afloat and enable them to get money immediately to continue to pay staff and provide services to prevent the situation from worsening.

He added: "We have got to show how we can do more in Britain and across Europe to help small businesses, as well as households, through what is a difficult economic time but where I believe Britain can lead the way out of the difficulties."

'Edge of abyss'

In the US, $700bn has been earmarked to rescue the US financial sector.

It is thought a similar move could be on the cards in Europe although this has been denied by Mr Sarkozy's office.

Mr Sarkozy is expected to propose improved co-ordination between EU governments.

French Prime Minister Francois Fillon - who has described the world as being "on the edge of the abyss" - has said France would propose measures to unfreeze credit and co-ordinate economic strategies.

Germany has made its opposition to any co-ordinated European bail-out plan known before the meeting.

Courtesy of www.bbc.co.uk/news