LONDON, Oct 11, 2008 (AFP) - British newspapers urged the world's powers to come up with a united, radical action plan this weekend to stop the global credit crunch from turning into a lasting depression.

The Group of Seven industrial powers, the wider Group of 20, the International Monetary Fund and the World Bank were all meeting in Washington over the weekend to thrash out solutions to the financial crisis and stock market slides.

And British quality and tabloid newspapers alike pressed them Saturday to take bold steps -- fast.

Even if Britain and the United States had thrown everything "including the kitchen sink" at the problem, that was better than the situation in mainland Europe, "where most governments show little appreciation of the gravity of their predicament, squabbling and disagreeing", the business daily said.

In Washington, "European leaders in particular must agree to a credible plan.

"The longer policy-makers take in addressing the crisis, the more damage will be done and the more extreme the policy measures will need to be.

"The G7 leaders must set out broad and credible principles on recapitalising viable institutions, dealing with toxic assets and guaranteeing wholesale lending."

The Guardian said the Washington weekend must not be an exercise in backslapping.

"If rich nations cannot agree this weekend on a plan to stem the banking crisis, the panic seen in financial markets yesterday will be nothing compared to what happens on Monday," it said.

It urged the G7 to bring in an unlimited guarantee on deposits in domestic banks and be prepared to suspend trading in securities in the banking and insurance sectors.

"The priority now is to stop a financial crisis turning into a depression."

The Sun, Britain's biggest-selling daily, said wealth was being destroyed "on a frightening scale" and while British Prime Minister Gordon Brown had acted wisely, his internatonal colleagues "must go further -- and quickly".

"Financial leaders meeting in Washington bear heavy responsibility. They must come up with an idea that stops next week becoming another rout," the tabloid said.

"Copying Mr Brown's plan to take public stakes in banks might be the answer.

"The lesson of history is that good times do return.

"But the wait is going to be long and painful."

The Daily Telegraph said coordinated global action was "desperately needed".

Banks must start "oiling the gears of the economy once more" by lending to small businesses and homeowners", the broadsheet said.

"Unless they do, the certainty of recession will turn into a full-blown depression."

The G7 must iron out inconsistencies in their responses to the crisis, "preferably by the Americans adopting some of the British ideas for buying bank capital."

The Independent said the G7 needed to match the global crisis with some global action. Governments needed to inject capital into banks to get them lending again.

Meanwhile there was now "no alternative" but to start discussing guaranteeing loans made to banks.

The newspaper also slammed Brown for lashing out at Iceland, saying his "outrageous and ill-considered" action was driving the island into Russia's arms.