Germany and France stand ready to recapitalise banks according to common criteria, German Chancellor Angela Merkel has said.
"We are not going into details today, we will present a complete package" for stabilising the eurozone at the end of the month, Merkel said at a news conference in Berlin on Sunday following a meeting with French President Nicolas Sarkozy.
The meeting came in the face of evidence that some European banks are creaking under the strain of the mounting debt crisis which has pushed Greece to the brink of bankruptcy.
It also came hours after France, Belgium and Luxembourg agreed to a rescue plan for Dexia, that is expected to lead to the dismantling of the troubled bank.
Al Jazeera's Nick Spicer reports from Berlin, Germany.