BRUSSELS, Mar. 1 (Xinhua) -- European Union (EU) leaders agreed at an extraordinary summit here on Sunday to act together in response to the financial crisis.

    "We agreed that Europe can face up to this challenge and overcome it only by acting together in a coordinated way," Czech Prime Minister Mirek Topolanek, whose country holds the EU rotating presidency, told reporters after the half-day summit.

    Topolanek said EU governments will have to act within the rules of the single market and the Economic and Monetary Union when they spend massive money on financial bailouts and economic stimulus packages.

    The leaders underlined the importance of building confidence and promoting financial stability, getting the real economy back on track, and working together with other international players.

    On building confidence, the leaders recognized the importance of unblocking the credit channel and of dealing with toxic assets of banks, said Topolanek.

    They also reiterated the need to improve the regulation and supervision of financial institutions, ensure long-term sustainability of public finances and strengthen macro-financial stability throughout the EU.

    With regard to measures on the real economy, the leaders committed to make maximum use of the single market as the engine for recovery to support growth and jobs. They stressed that protectionism is no answer to the current crisis.

    "(Since) we have a Europe without barriers, we need a Europe with rules, a Europe with common principles," said Barroso.

    The leaders recognized the importance of measures to counter the negative impact on employment. They agreed to find concrete orientations and measures to mitigate the social and employment impact of the crisis at an employment summit in May.

    They recognized the importance of the Group of 20 (G20) economic summit in London on April 2 for rebuilding confidence among businesses, citizens and the financial sector. The leaders would use their March 19-20 summit to prepare EU's position at theG20 summit.

    They agreed to "invest every effort" to build consensus on modalities leading to a rapid conclusion of the Doha round of trade talks under the World Trade Organization.