(PARIS) - Germany's Chancellor Angela Merkel confirmed Sunday her government would unveil its plan to rescue banks from the effects of the credit crunch on Monday, after agreeing an outline with EU leaders.

"Tomorrow Germany will get to grips with its package of measures. We will do this together with France," Merkel said, describing the action plan adopted Sunday with fellow European leaders as a "tool box" of possible measures.

"Other countries too will also rapidly take measures so that ... an important signal can be given to the markets," she said.

Following Sunday's meeting, France's President Nicolas Sarkozy said the states had agreed to underwrite inter-bank lending and recapitalise banks.

"The capital that we are providing to banks comes with conditions, however," Merkel said, "because taxpayers have the right to expect that if they are contributing to the stability of the financial system that this will be honoured."

Sarkozy said the costs of the national plans would be unveiled from Monday.

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