(MADRID) - The Spanish government does not rule out moving to boost guarantees on bank deposits if the European Union fails to adopt a common policy, Economy Minister Pedro Solbes said Monday.

"If there is no agreement, we will reflect, and if we have to take measures we will take them, but our priority is that the decision be European," he told reporters when asked whether Spain would extend bank deposit guarantees in line with Ireland, Greece, Germany and Denmark.

Spain currently guarantees deposits of only up to 20,000 euros (27,500 US dollars), which is the minimum limit under European Union law, but has faced calls from consumer groups to raise the limit to 150,000 euros.

Madrid hopes an EU-wide decision can be reached "the sooner the better, since there are nations which are taking (unilateral) decisions," a spokeswoman for the economy ministry told AFP.

Last week Solbes, a former EU economic commissioner, said Ireland's initial decision to guarantee all bank deposits has created irritation and the European Commission must confirm its legality.

The Irish government was first to offer to guarantee all deposits, covered bonds, senior debt and dated subordinated debt of the country's four main banks.

The German government on Sunday offered an unlimited guarantee for all private bank deposits in a bid to prevent a panic run on banks in Europe's biggest economy.

On Monday, a Danish minister said Copenhagen had also moved to guarantee savers deposits -- Greece came earlier -- and attacked the EU's French presidency for not coordinating a bloc-wide response on the issue at Saturday's mini-summit of leaders.

The European Commission said Monday that Germany's guarantee was in line with EU competition rules as it seemed to be limited to retail bank deposits and did not pose the same problems as a similar announcement by Ireland which covers all all deposits.

"In general, retail deposit guarantee schemes can be an appropriate policy response to fears regarding the stability of the financial system," said Jonathan Todd, spokesman for EU Competition Commissioner Neelie Kroes.

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