European leaders agreed on the need to tighten global regulation to prevent any repeat of the crisis that has driven the world into recession, saying the financial system needs a wholesale overhaul, Bloomberg reported.
Meeting in Berlin today, the heads of state and government from European members of the Group of 20 approved a seven-point plan to help restore confidence in markets pounded by the crisis. Compelling banks to save capital for lean times, boosting transparency and formulating "a toolbox of sanctions" on tax havens are among the measures to be taken to a full G-20 summit in London in April, the leaders said.
"We all agree now that in London, Europe wants to see an overhaul of the system," French President Nicolas Sarkozy told reporters after the talks. "We're not talking about superficial measures. We're not talking about transitional measures. We're talking about structural measures that need to be taken."
German Chancellor Angela Merkel called the Berlin meeting to forge a united European response to the deepening recession for the April summit that will be attended by President Barack Obama on his first trip to Europe since taking office. Italian Prime Minister Silvio Berlusconi said that G-20 envoys will coordinate with Obama before April. The G-20 groups the main industrialized and developing countries, including China, Brazil and India.
...