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https://www. cnn. com/2008/BUSINESS/10/15/world. markets/index. html
(CNN) -- EU leaders are holding a summit in Brussels to hammer out the details of their $2.7 trillion banking bailout.
Leaders from the 27-nation European Union are meeting Wednesday and Thursday in the hope further agreement on their approaches will give markets more confidence.
Proposals include a guarantee on bank deposits worth up to $136,760.
Sharemarkets fell Wednesday after two days of large gains prompted by Britain, Germany, France, and the U.S.'s banking bailouts worth more than $3 trillion.
They, along with the Netherlands, Spain and Austria, have agreed to buy shares in banks and pump huge sums of money into lending markets in an effort to restore confidence and make credit readily available again.
The EU meeting was originally meant to discuss climate change but the economic crisis was expected to dominate. Read timeline of the crisis
Before the meeting, British Prime Minister Gordon Brown said the world had to work together to solve the economic crisis and called for global talks this year to reform the world's financial system. Watch more on Brown's political recovery »
He said a global summit could be held in the next few months despite lack of agreement among international leaders.
Brown appealed to the other countries to join Europe's bailout plan, which he said was key to unfreezing bank lending and softening any economic downturn stemming from the difficulties banks were having.
"I hope we will find agreement ... to stabilize the financial system and then to move the economy of Europe forward," Brown told The Associated Press.
"We now see around the world major economies taking similar action, liquidity being brought into the system, we have the recapitalization of the banks, so that they are stronger for the future, we have the resumption of the funding the banks can do to small businesses and mortgage holders."
European Commission head Jose Manuel Barroso has called for supervision of hedge funds and private equity, and action against "short-termism" and "perverse incentives."
Barroso said some governments still opposed a more coordinated European approach. Watch European Central Bank chief discuss the crisis »
"I hope that now the spirits are more open to the need for that more coordinated approach."
Leaders of EU nations outside the euro-zone -- such as Sweden, Denmark and Poland -- are being asked to endorse the banking rescue package.
The Czech Republic and some other eastern EU countries are complaining about the plan however, arguing they cannot afford to offer the same level of guarantees to account holders as richer EU members.
Meanwhile the Dow Jones and European markets fell, giving back Tuesday's
gains, on fears that despite the bank bailouts the world is still headed for a recession. London's FTSE, the Paris CAC-40 and Frankfurt's Dax were off between three and four percent.
Trading on Russia's two main stock exchanges was again briefly suspended as shares fell steeply in morning trading.
Most Asian-Pacific markets were also lower.
In Japan, the Nikkei closed the day up a percent, after gaining 14 percent in the prior session. Watch more on the markets »
Australia's All Ordinaries index finished down a percent and Hong Kong's Hang Seng slumped 4.96 percent. The Taiwan Weighted fell less than a percent.
The story was similar in Seoul, where the KOSPI index fell two percent. Singapore's Straits Times index was off four percent and the BSE SENSEX in Mumbai slipped five percent
Recession fears saw oil for November delivery fall $2.09 to $76.54 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe.
In the United States on Tuesday, major indexes finished close to break even, despite more details of the government plan to make direct investment in U.S. banks
