Berlin: German Chancellor Angela Merkel is calling for increased controls over the world’s financial markets through a new international charter as a way to get out of the global financial crisis and prevent such events in the future.
In comments published in her weekly podcast Saturday, Merkel said economic imbalances would have to be reduced in order to prevent future risks. The chancellor called for a “charter of sustainable economic activity” that she hopes will attract broad support at a meeting in Berlin Sunday of the heads of Europe’s leading economies.
“We want to make sure that in the future there are no gaps in the world regarding financial products, market participants or instruments,” Merkel said.
Among the solutions Merkel is pushing is the idea of a global “risk atlas” that would give an overview of where risks might occur, in an effort to swiftly intervene and prevent them from escalating.
The chancellor said she would continue to agitate for increased hedge fund regulations and improved work by ratings agencies changes that Germany had sought to bring about during its presidency of the Group of Eight industrialized nations in 2007.
Speaking in Paris, French President Nicolas Sarkozy called for a strong common position from Europe, insisting that any response to the economic crisis would have to be “ambitious” and not based on “reduced compromise.”
Heads of government and finance ministers from Britain, Italy, Luxembourg, Spain, the Netherlands and current EU presidency-holder Czech Republic will attend Sunday’s meeting aimed at solidifying a common European position ahead of an April summit of the Group of 20 advanced and developing nations in London.