BRUSSELS - EUROPEAN Union leaders reached unanimous agreement on a 200 billion (S$398 billion) euro economic rescue package at a summit in Brussels on Friday, British Prime Minister Gordon Brown said.

'What Europe has proved unanimously today is that it is ready to act in a united way to deal with the global downturn,' Mr Brown told reporters on the second and final day of a summit in Brussels.

'We will continue to reject the do-nothing approach and we will not stand by and let the recession take its course.' Mr Brown's comments came before leaders were expected to issue a joint declaration of support for the 200 billion euro stimulus package which is designed to dig the continent out of recession.

The British government was ridiculed by Germany's finance minister Peer Steinbrueck on the eve of the summit over its own 20 billion pound (S$44.5) bailout package, saying it would only saddle the country with a mountain of debt.

'This today is the answer to those who say you do nothing,' said Mr Brown.

'This is the answer to those who say fiscal policy should not be used to support monetary policy. Europe is agreed that we have a responsibility to our people.' -- AFP