Gordon Brown is under intense pressure to guarantee all savings in British bank accounts after Germany and Denmark became the latest European countries to make the move.

Germany yesterday said it would guarantee all private German bank accounts – currently worth €568bn (£439bn) – in a dramatic move to prevent panic withdrawals as fears over the worldwide financial crisis spread to Europe’s largest economy.

Treasury officials were scrambling to discover the extent of the response by the German leader, Chancellor Angela Merkel, to the deepening financial crisis, which immediately sparked speculation that other European nations would be forced to follow suit. Late last night, the Danish government guaranteed all bank deposits as part of a deal to set up a 35bn Danish kroner (£3.6bn) liquidation fund.

The Times, Daily Telegraph, The Independent