(PARIS) - European Union member states will "take all necessary measures to maintain the stability of the financial system," they said in a statement released simultaneously in their capitals Monday.

The joint declaration said governments would protect the stability of financial institutions by providing "liquidity support through central banks, action to deal with individual banks or enhanced depositor protection schemes.

"While no depositors in our countries' banks have lost any money, we will continue to take the necessary measures to protect both the system and individual depositors," it added.

"In taking these measures, European leaders acknowledge the need for close coordination and cooperation," according to the text, which French President Nicolas Sarkozy read out on the steps of his office in Paris.

France currently holds the European Union's rotating presidency.

The statement was released shortly after Europe's stock markets tumbled, hitting multi-year lows as the credit crunch triggered by a meltdown on Wall Street continued to threaten European banks and financial institutions."

Economic and Financial Affairs Council (ECOFIN)

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