The Taoiseach will travel to Paris later today for an emergency meeting of leaders from the 15 countries that use the Euro.
The meeting is being held at the request of Spain.
According to French reports, the leaders may be asked to back a plan to invest taxpayers’ money in banks in order to recapitalise them, and guarantee their debts in the interbank money market.
This is similar to the plan announced by the British government last week and by US Treasury Secretary Henry Paulson on Friday.
Using taxpayers’ money to buy bank shares, effectively a part nationalisation, would be difficult for the Irish government, which is attempting to plug a €15bn hole in the budget on Tuesday.
It is believed that Ireland would argue for any such scheme to be voluntary.
The Government already provides a guarantee for some bank debts.
Germany’s Finance Minster has said it is time to stop rescuing banks on a case-by-case basis and to move to a comprehensive solution to the credit crunch.
Ten days ago the Dutch proposed a €300bn bank capitalisation fund for all of the EU, but this was rejected by Germany and other states.
