The world's biggest central banks announced Wednesday a coordinated plan to ensure the Eurozone sovereign debt crisis doesn't freeze up global markets.

The U.S. Federal Reserve, the European Central bank, and the central banks of Canada, England, Japan and Switzerland will work together to ensure that skyrocketing interest rates on Italian bonds don't collapse Eurozone banks or force the continent's third largest economy to default.

News of the coordinated central bank intervention followed by hours a statement by the European Union's Economic and Monetary Affairs Commissioner that the Eurozone is now entering the critical period of 10 days to complete and conclude the crisis response of the European Union.

Moments after the central banks' announcement European stocks shot up, with Germany's DAX stock index up more than four percent.

The euro rocketed higher and the dollar tumbled more than one percent. Gold soared 1.6 percent.

The six banks said that beginning Dec. 5 they were slashing the cost of existing dollar swap lines by half a percentage point. The rate will stay at the lower level through Feb. 1, 2013.

When there's concerted action by central banks, it's definitely good, Jens Sondergaard, senior European economist at Nomura International Plc, told Bloomberg. But are liquidity injections a game changer when the heart of the problem is in European sovereign debt markets?

The banks also said they were creating temporary bilateral swap programs so funding can be provided in any of the currencies should market conditions so warrant, Bloomberg reported.