Brown wants £12bn European fund

Mr Brown will join the leaders of the four EU nations belonging to the G8 group of industrialised countries - France, Germany, the UK and Italy, as well as the head of the European Central Bank and the President of the European Commission.

Speaking at 10 Downing Street before his departure for Paris, Mr Brown said: "We are seeing, in addition to the national action we are taking, that these global problems about oil, about the credit crunch, need global solutions.

"So I will be proposing to the leaders I meet in Paris today that we work together to clean up the system, both in America and Europe where there have been problems, that we call a timetable for international meetings to agree the changes that will open up those areas which have been far too often closed and not transparent.

"And I will also be proposing a £12 billion small business fund, so that small businesses in our country and the rest of Europe can get money immediately so that they can continue to employ staff and continue to provide services.

"I think in the next few weeks we have got to show how we can do more in Britain and across Europe to help small businesses, as well as households, through what is a difficult economic time but where I believe Britain can lead the way out of the difficulties."

The scheduled four hour meeting has been called by French President Nicolas Sarkozy, who holds the EU's presidency.

The meeting is intended to show solidarity between Europe's "big four" - but divisions are growing over how far to go in regulating the money markets and bailing out failing banks and finance houses.

The meeting will welcome Washington's approval of a massive 700 billion dollar (£397 billion) rescue package to restore confidence in Wall Street.

But suggestions of a similar central pot of cash to be set up for the 27-nation EU bloc have received such a poor response that French ministers are denying it was their idea.