An emboldened Gordon Brown today ambushed the European summit agenda with a bold call to reopen world trade talks after calling on the 27 member states to shore up confidence in the financial system.

The Prime Minister – clearly refusing to rest on his laurels after his bank rescue plan won international praise – set a far reaching reform agenda for the world's financial system.

Mr Brown called for an international summit before the end of the year to reorder global institutions such as the IMF and said that a world trade deal would also be on that agenda.

"Protectionism may give some countries a short term advantage but in the long run it will not help. The message must go out that this 'beggar-my-neighbour' approach of the past is of no use in the future and one big symbol of that would be a world trade deal saying that protectionism is unacceptable."

Some may detect the hand of the newly-enobled Lord Mandelson, the former EU Trade Commissioner, in this plan, whom Mr Brown called back from Brussels to be his new Business Secreary. Lord Mandelson strove hard but ultimately failed to broker a world trade deal while in Europe.

As Mr Brown arrived in Brussels, the European Commission issued a controversial proposal that all EU nations raise their bank deposit guarantee to €100,000 next year, a week after finance ministers agreed to boost the level of protection from €20,000 to €50,000.

The proposal is likely to prove contentious, not least in Britain, where accounts are protected to the tune of £50,000, with some EU nations arguing that it is a step too far.

Standing alongside Jose Manuel Barroso, President of the European Commission, after talks this morning, Mr Brown soberly warned that there were further "difficult problems" to come around the world in the coming days as he prepared for the regular two-day summit of 27 EU leaders.

They are expected to endorse his scheme agreed by the 15 Eurogroup members in Paris on Sunday, involving each government being prepared to guarantee interbank loans and take stakes in troubled banks.

As he spoke, rising unemployment figures were released in Britain but he refused to comment on them in detail, focusing instead on the need for the EU to stick to its ambitious climate change measures despite looming recession.

Mr Brown also repeated his call for reform of international financial bodies set up in the 1940s to cope with globalisation.

"Stage one was to stabilise the financial system with liquidity, recapitalisation and trying to get funds moving for small businesses and consumers," said Mr Brown.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax