European governments on Monday pledged a total of €1,873bn ($2,546bn, £1,465bn) as part of co-ordinated plans to shore up their financial sectors, sparking sharp rallies across the continent’s stock markets.

In the largest such plan, closely modelled on last week’s British initiative, Germany said it would issue up to €400bn in credit guarantees for inter-bank lending and set aside a €100bn fund to inject capital in financial institutions and acquire illiquid assets.