The Guardian led with the news that Britain's chancellor of the exchequer Alistair Darling made two calls to Minister for Finance Brian Cowen on Wednesday amid fears that customers in the United Kingdom were flocking to switch accounts to Irish banks following the Government's decision to set up
the guarantee scheme.

Mr Darling is said to have told Mr Lenihan that the scheme was "a problem for the UK" and to have called on the Minister for Finance to offer the guarantee to British banks operating in this State.

The Daily Mail reported that families in Britain had been "scrambling" to move their savings into Irish banks and into UK state-owned financial institutions such as Northern Rock amid fears of further
banking failures.

Taking a contrary view, the International Herald Tribune suggested that the stampede to switch accounts had been somewhat exaggerated. It quoted the British Bankers' Association which said that
there had been no widespread transfer of money from British to Irish banks as of yet.

The Wall Street Journal took a similar line, noting that while British banks had complained of the Irish Government's scheme, there was little to suggest that savers were deserting banks.

In Germany, Der Spiegel noted that "the unprecedented step" had immediately shored up confidence in Irish banking and led to a recovery of bank stocks.

Meanwhile, in France, Le Monde said that "in the financial crisis which affects Europe, Ireland plays it solo" and claimed that Ireland had "caused panic" among fellow member states.

The Scotsman reported that Royal Bank of Scotland received a boost after the Irish Government said it was "sympathetic" to its application to have savings with its subsidiary, Ulster Bank, guaranteed.

In Australia, the Age said that the Irish Government had offered "a virtual blanket guarantee of Irish bank loans and deposits".

BBC Newsdescribed the passing of the bank legislation today as "a guarantee to remove uncertainty". Its consumer correspondent Martin Cassidy is quoted as saying that while it is very difficult to find
any guarantees in the current climate, "at least there's some relief for people who have money in Irish banks".

The Daily Telegraph , meanwhile, warned British savers there were risks involved in changing accounts. It carried an interview with Adrian Coles, the director of the British Bankers' Association, who questioned whether people would be better off moving their savings.

"Savers should beware that, if they switch accounts to take up this guarantee, they are effectively betting on the Irish Government's ability to buy sufficient sterling in the foreign exchange markets. It is not at
all clear to me that they have quantified the potential risks they are taking on here," said Coles.

Spain's El Mundo said Ireland had "defied the opposition of London and the reluctance from Brussels" in approving the legislation. It said the plan represented a challenge for the rest of Europe "since it could distort competition".