Leaders across Europe are working together to form a rescue plan for the continent's banking industry, it has emerged.
Italian prime minister Mario Monti has put forward a proposal that will provide a safety net for struggling banks in the region which has been accepted by his fellow senior officials, the Sunday Times reports.
This budget will be funded by the imposition of a levy on banks and is intended to quell the ongoing threat of collapses in the financial sector while also boosting investor confidence in embattled nations such as Spain and Italy.
It is thought that all member states across the eurozone are supportive of this measure as worries over the future of the region's banking market have intensified over the last few days after Bankia received an $18 billion bailout from the Spansih government.
Meanwhile, the prospect of Greece leaving the eurozone altogether in the near future has also heightened the need for more decisive policy action.
By Claire Archer