Taoiseach Brian Cowen, who is visiting Paris, has said his bank guarantee scheme has received backing from French President Nicolas Sarkozy.
Mr Cowen told reporters he thought Mr Sarkozy, whose country holds the rotating six-month presidency of the EU, understood precisely the reasons the Irish Government had to act.
Shares in Irish banks are continuing to recover after the Government's plan to guarantee their deposits and debts.
Dublin's ISEQ index closed 2.5% higher at 3,641, with the banking stocks gaining between 10.5% and 8%.
London's FTSE closed 1% higher, and other European stocks mainly rallied.
Meanwhile, EU Competition Commissioner Neelie Kroes has appealed to national governments not to act unilaterally in the current financial crisis, and to consult the commission especially on the question of offering state aid to financial institutions.
Speaking at a press briefing in Brussels, Ms Kroes said that the Commission is in close contact with several governments, including Ireland, but declined to comment on individual cases.
Britain wants Ireland to look closely at its guarantee to make sure it complies with EU law.
Prime Minister Gordon Brown said European governments should make sure that whatever actions they took to tackle the global financial crisis complied with EU competition law.
EC chief Jose Manuel Barroso said the EU needs a shake-up of banking deposit insurance schemes so that there will be more consistency across the Union.
Currently, deposit guarantee schemes vary widely across the EU with some countries offering much greater protection of depositors' savings than others.
Italy to guarantee banking system
Separately, the Italian government is to take steps to guarantee the stability of the banking system as Italy's leading bank, UniCredit, took a battering on the stock market today.
The Bank of England has offered a total of €40bn (€28bn) in short-term loans to banking institutions hit by the global credit crunch.
The bank began injecting dollar funds into money markets last month as part of a coordinated central bank action.
Europe's four biggest economic powers - Britain, France, Germany and Italy - are to meet on Saturday in Paris for talks on the global financial crisis.
Most world stock markets made gains this morning, but some European markets have retreated since then.
In London, the FTSE was stronger. The EC this morning approved the British government's plans to rescue mortgage company Bradford & Bingley, which is to be nationalised.
German regional bank WestLB is drawing up a timeframe for a possible merger with Dekabank, an institution that manages funds from German savings banks.
The state-owned bank is under pressure from the EC to find a partner after it benefitted from a €5bn rescue package which included controversial state aid.
Germany's DAX index was down 0.75%, after trouble in car manunfacturing companies: Porsche had plunged by 9.35% after it declined to issue an outlook for the current fiscal year.
BMW was down by 4.18%, while Volkswagen had lost 5.10%.
Shares in Italy's the second biggest bank, Intesa Sanpaolo, were suspended on the Milan stock exchange after an excessive fall.
It lost 5.33% in early trading, as it became the second Italian bank to be hit hard by the shockwaves of the US financial crisis.
Top bank Unicredit also saw its stocks suspended as the share price dropped to €2.55.
