Key European leaders call for better early warning system for global
economy
European leaders called Tuesday for greater transparency in global
markets - warning financial institutions must act promptly or face the
prospect of tighter regulations.
British Prime Minister Gordon Brown hosted French President Nicolas
Sarkozy, German Chancellor Angela Merkel, Italian Premier Romano Prodi
and European Commission President Jose Manuel Barroso for talks in
London on turbulence in the international economy.
The leaders called for improvements to information provided by credit
rating agencies, fuller disclosure from banks and other institutions on
their losses and ways to better predict global financial downturns.
“We need a better early warning system for the global economy and we
need to ensure that its warnings have the force and authority to ensure
that they are acted upon,” Brown told reporters after a meeting of
European leaders at his Downing Street office.
In a joint communique, the leaders said recent financial turbulence
had increased the risks to growth in 2008, but insisted Europe is well
placed to withstand the jitters.
“The fundamentals of the European economy remain strong, with
employment still rising,” the leaders said in the communique. “At this
time of global uncertainty we need to signal our commitment to an open
global economy.”
The talks between Barroso and the European members of the Group of
Eight industrialized nations came before a meeting of finance ministers
of G-7 countries, scheduled for Feb. 9 in Tokyo.
Barroso said Europe must act together with other international
partners to push for similar reforms on a global scale. Merkel told
reporters she hoped the United States could be encouraged to take
actions similar to those outlined by the European leaders.
“The citizens’ confidence and trust, and openness, in financial
markets needs to be secured,” Merkel said. “The first step is to call on
all those players in the markets to show more transparency.”
Both Brown and Merkel warned that regulation would follow if the
market response is inadequate.
London, Wednesday, AP |
