With latest data confirming that their economies are crumbling, Group of Seven finance ministers launched two days of talks in Rome on Friday night with warnings that unco-ordinated national responses to the crisis would fuel protectionism.

Alistair Darling, UK chancellor of the exchequer, said the sharp fall in Germany’s gross domestic product was further evidence of “one of the severest downturns in generations”, demonstrating that “governments must take extraordinary actions at extraordinary times”.