Brussels - The deployment of warships from European Union states against pirates off the coast of Somalia is to begin in December, EU diplomats said Friday.

The final decisions on the matter are to be taken on Monday at a EU foreign ministers' meeting in Brussels.

The operation, to be called Atalanta, is to be led by an admiral from Britain's Northwood naval command, and tasked with protecting freighters against pirate attacks either off the Somali coast or on their way into Mogadishu ports.

Brussels - French President Nicolas Sarkozy on Friday urged his European Union colleagues to agree on how to reform global finance amid strong resistance from Sweden and scepticism among several other member states.

"We have no choice other than to reach an agreement," Sarkozy said at the start of Friday's extraordinary EU summit. "For Europe to count, we must be united."

Sarkozy, whose country holds the rotating presidency of the EU until the end of the year, is hoping that a unified European position will put the 27-member bloc in the driving seat when Group of 20 leaders meet in Washington next week to discuss ways of avoiding a repeat of the current market turmoil.

Brussels - European Union leaders were gathering in Brussels on Friday in a bid to forge a common position on overhauling the world financial system and avoiding a repeat of the current market turmoil.

During their lunchtime summit in Brussels, leaders were to discuss a revised paper submitted by the French presidency of the EU, which sets out five broad guidelines.

In particular, the paper calls for strengthening the International Monetary Fund's (IMF) supervisory role and boosting funding for the Washington-based body with additional contributions.

Brussels - European Union leaders are meeting in Brussels on Friday to hammer out a common stance on pursuing a rapid overhaul of the world financial system in the wake of the recent round of global market turmoil.

During their lunchtime summit in Brussels, leaders are to discuss a revised paper submitted by the French presidency of the EU, which sets out five guidelines designed to avoid a new credit crunch.

Brussels - The Polish government must sell off two loss-making shipyards which were the cradle of the anti-Communist Solidarity movement to claim back hundreds of millions of euros in illegal state aid, the European Union's executive ruled Thursday.

"State aid granted to the shipyards in Gdynia and Szczecin gives rise to disproportionate distortions of competition ... in breach of EC Treaty state aid rules, and must be repaid," EU Competition Commissioner Neelie Kroes told journalists in Brussels.

Brussels - Popstar Bjork said Thursday that Iceland should join the European Union to protect the country's economy and give it a greater voice in climate change talks.

"Right now, it looks like its the only way," Iceland's greatest celebrity said when asked whether she was in favour of her country joining the EU.