European Union (EU) leaders yesterday called for a revamp of the global financial system to prevent the recurrence of the current financial crisis.

The leaders are pushing for a global summit by the end of this year, preferably in November, said French President Nicolas Sarkozy, whose country holds the EU presidency.

He said he would invite U.S. President George W. Bush to the summit this weekend and would also invite leaders of the emerging economies, such as China and India.

"We all agree in Europe that we are going to need to re-found the international financial system," Sarkozy told reporters after the end of the first day of an EU summit dominated by the financial crisis.

"We had the crisis in developing countries; we had the Internet bubble; now we have a massive crisis. We are determined to draw conclusions concerning the financial system, the monetary system to revamp capitalism."

No financial institutions should be exempted from supervision, he said.

Sarkozy said the EU leaders endorsed the bailout plan adopted at a euro zone summit in Paris on Sunday.

"The whole of Europe, without exception, supports the concerted action plan adopted in Paris on Sunday," he said.

Leaders of the 15-nation euro zone countries plus Britain, Denmark and Sweden approved in Paris a bailout plan for banks. They agreed to provide guarantee for new bank debit issuance and recapitalize distressed banks.

Sarkozy said the EU leaders on Wednesday agreed to apply relaxed accounting rules for banks as soon as the third-quarter figures are out.

He added the so-called "mark-to-market" accounting rules, whichrequire financial products to be valued at their current price, rather than the purchase price or the price they might fetch later, are sometimes absurd.

The leaders also agreed to create a "crisis management unit," which would promote exchange of information, give advice and coordinate action. Sarkozy said the leaders would finalize their agreement on the issue on Thursday and the unit would be set up ina few days.

Sarkozy said the EU must stick to its objectives and timetable on climate change.

"We can't question the "3x20" targets -- they have to stand. And also the timetable has to stand," the president said.

EU leaders last year agreed to reduce 20 percent of the greenhouse gas emissions by 2020 from the 1990 levels. They also set a target of having 20 percent of renewables in energy mix and increasing energy efficiency by 20 percent within the time frame.

On Wednesday night, the leaders debated a package of measures prepared by the European Commission, which would put the pledges into reality.

European Commission President Jose Manuel Barroso said Wednesday that the EU is in a difficult situation on this issue, given the current financial crisis.

Sarkozy said he would work hard to meet the Dec. 31 deadline for an agreement as originally foreseen. "The crisis we are facing now should not lower our ambitions," he said.

However, Italy and Poland have threatened to veto a summit declaration if it contains the December deadline.