The German government will not pass new legislation to provide extra protection for savers, the BBC has learned.
Chancellor Angela Merkel's commitment was a political one that no German savers would lose any money, according to BBC business editor Robert Peston.
Her undertaking was similar to that offered by Chancellor of the Exchequer Alistair Darling.
There were fears at the weekend that if Germany offered 100% protection, the UK would have to follow suit.
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The German lack of total commitment is in contrast to Monday's announcement from Denmark that it will provide unlimited guarantees to savers.
Sweden also increased the amount of protection it offers.
Last week there was indignation across Europe after the Irish government unilaterally decided to provide unlimited guarantees to deposits in its banks.
In the UK, the limit on the amount of deposits that are guaranteed should a UK bank go bust will go up from Ј35,000 to Ј50,000, per banking group, from Tuesday.
(BBC)
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