Roger Runningen and Gregory Viscusi
Sunday, Oct 19, 2008
Related: EU Leaders Call for Global Currency
The leaders of the U.S., France and the European Commission will ask other world leaders to join in a series of summits on the global financial crisis beginning in the U.S. soon after the Nov. 4 presidential election.
President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Barroso said in a joint statement after meeting yesterday that they will continue pressing for coordination to address “the challenges facing the global economy.”
The initial summit will seek “agreement on principles of reform needed to avoid a repetition and assure global prosperity in the future,” and later meetings “would be designed to implement agreement on specific steps to be taken to meet those principles,” the statement said.
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European leaders have pressed to convene an emergency meeting of the world’s richest nations, known as the Group of Eight, joined by others such as India and China, to overhaul the world’s financial regulatory systems. The meetings are to include developed economies as well as developing nations.
“The first task is to stabilize the financial markets in our own countries,” Bush said in welcoming Sarkozy and Barroso to the Camp David presidential retreat in rural Maryland. “Given that the world has never been more interconnected, it is essential that we work together because we’re in this crisis together.”
He stressed that any steps to prevent future crises must maintain and strengthen the free-market system.
“It is essential we preserve the foundations of democratic capitalism,” Bush said.
Sarkozy and Barraso are pressing Bush for a G8 agenda that includes stiffer regulation and supervision for cross-border banks, a global “early warning” system and an overhaul of the International Monetary Fund. Talks may also encompass tougher regulations on hedge funds, new rules for credit-rating companies, limits on executive pay and changing the treatment of tax havens such as the Cayman Islands and Monaco.
This article was posted: Sunday, October 19, 2008 at 3:39 am