LONDON - BRITISH Prime Minister Gordon Brown warned European leaders they were facing a 'moment of truth' on Sunday in their efforts to tackle the global financial crisis.

Before leaving for a meeting with leaders of the 15 eurozone countries in Paris, Mr Brown pledged Britain would 'lead the way' out of the crisis but stressed collective action was essential to restore confidence to panic-stricken markets.

'We have taken action to strengthen our banks in Britain. But that alone is not enough,' Mr Brown wrote in the Sunday Mirror newspaper.

'What the events of this week have shown is that this is a global problem that requires a global solution.

'I am going to Paris to persuade other European countries to adopt the comprehensive approach we have taken in Britain.

'For Europe, the stakes could not be higher and this is a moment of truth.

'No country - not even the biggest - can make it just on their own at a time like this. We are all in it together and have to work to solve it together.' Brown added: 'I've seen in the cities and towns I've visited a calm, determined British spirit; that, while this is a world financial crisis that has started from America, Britain will lead the way in pulling through.' European leaders at the Paris meeting are studying the British government's bank bailout plan launched last week with a view to copying it.

The British government is making 50 billion pounds (S$126 billion) of taxpayers' money available to buy shares in major banks, providing them with fresh capital in a bid to prevent a collapse of the banking system.

The three-part package also makes available 200 billion pounds in short-term loans and another 250 billion pounds to guarantee loans between banks.

The plan will see the British government taking controlling stakes in Royal Bank of Scotland and HBOS, two of the banks worst affected by the crisis, newspapers reported Sunday.

An industry source said Britain's major banks would make an announcementon Monday.

The unprecedented move would make the government the biggest shareholder in the banks and government representatives would be installed on their boards, the Sunday Times and Sunday Telegraph said.

France appeared to be moving towards a similar package, with the government set to propose a law designed to offer a state guarantee for banks endangered by the crisis, a lawmaker from the ruling party said Sunday.

And the US administration was also now favouring investing government money directly into US banks, the New York Times reported on Sunday.

British finance minister Alistair Darling told the News of the World that Britain's bailout package could be a blueprint for other countries.

'There is a widespread recognition that the British plan, calling for action on capital, liquidity and regulation on banking practices, is the right way forward,' he said.

'The system has seized up. We need to oil the wheels to get it going again.' -- AFP