The meeting in Luxembourg follows yesterday's huge losses in markets around the world with the FTSE 100 in London hitting a four-year low after suffering its biggest ever one-day points fall.

Although no major announcements are expected, Mr Darling is likely to urge ministers not to risk worsening the crisis by taking unilateral action to protect their own banks which could have damaging repercussions for other member states.

In the Commons yesterday, he made clear his irritation at the way countries such as Germany and Ireland had promised to guarantee all savings deposited in their banks in an attempt to avert more damaging collapses.

Although Mr Darling said that the German statement was "political declaration" of intent and was not legally binding, it nevertheless intensified the pressure on the UK authorities to offer a blanket guarantee for savers.

As of today, deposits of up to £50,000 - and up to £100,000 for joint accounts - will be fully protected and Mr Darling said that the Financial Services Authority would be consulting on whether they needed to go further.

The Chancellor welcomed a joint statement by the EU leaders promising "close co-ordination and co-operation" in future interventions.

With the Bank of England set to inject another £40 billion into the markets - with more cash promised throughout October and into November, Mr Darling reaffirmed his commitment to do "whatever is necessary" to maintain stability.

The Government will today publish its Banking Bill, giving the authorities new powers to intervene in failing institutions, with the promise of cross-party support from the Conservatives and Liberal Democrats.

Mr Darling reacted cautiously to calls by the opposition for the Government to take shares in the banks - effectively part-nationalising them - in order to provide them with new capital
He said that the Government would act "quickly and and decisively" when it had proposals to bring forward, warning that speculation could cause further instability.

However in a speech last night in London, Prime Minister Gordon Brown said that markets need "morals" and made clear that the Government was prepared to act to prevent "irresponsible risk taking" by banks and other institutions.

"Wealth creation is not just a privilege but a responsibility. And that is why we back the work ethic; we support effort and enterprise and responsible risk taking. These are the morals markets need," he said.

"Where there has been irresponsibility we must now have instead transparency, integrity, responsibility, good housekeeping and international co-operation as the vital foundation stones of our financial system and the international financial system."