France wants to strengthen the European Union's political contribution to stabilising world financial markets and overhauling the role of the International Monetary Fund and World Bank.

It has sent 12 proposals to EU governments in the most far-reaching attempt yet by a member of the future European single currency to ensure the euro is backed by an active diplomatic approach to international financial issues.

The initiative follows ideas outlined earlier this week by Mr Tony Blair, the British Prime Minister, for reform of the IMF and for dealing with financial instability.

The proposals will be discussed at the meeting of EU finance ministers due to be held today and tomorrow in Vienna. The aim is to co-ordinate a euro-zone position in advance of IMF and World Bank annual meetings, which begin early next month.