European leaders are discussing whether to harmonise the level of bank guarantees across the EU to cover deposits of up to €100,000 (£78,000).

Bank deposits of up to €100,000 (£78,000) could be guaranteed across in the EU under proposals being discussed by finance ministers in Luxembourg today.

Brian Lenihan, the Irish Finance Minister who was meeting other finance ministers in Luxembourg today, said: “That is an issue we are going to discuss, so clearly anything we can do to give greater confidence among depositors is very important. We don’t want these movements taking place between accounts all the time.”

Since Ireland announced last week that it would guarantee all savings deposits, there have been inflows of cash from Britain into Irish banks, including a reported single corporate deposit of €500 million.

In an effort to stop cash leaving the country, the UK Government will guarantee deposits of up to £50,000, which covers 98 per cent of all savers, from today.

When asked if the EU should raise the minimum level of guaranteed deposits from €20,000 to €100,000, Mr Lenihan said: “That is a matter that is under consideration. Certainly anything that can stop the movements between accounts would be very welcome.”

Wouter Bos, the Dutch Finance Minister, confirmed that the group would discuss bank deposit guarantees.

Anders Borg, the Swedish Finance Minister, said: “We need to find a common solution as one country’s solution may be another country’s problem.”

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