EU countries agree on tougher financial supervision
Major European Union (EU) countries on Sunday agreed on concrete measures to enforce supervision of world financial markets.business Updated: Feb 22, 2009 23:12 IST
Major European Union (EU) countries on Sunday agreed on concrete measures to enforce supervision of world financial markets.
The EU leaders and finance ministers meeting in Berlin agreed that all financial markets, products and participants, including hedge funds and credit rating agencies, should be put under tougher supervision or regulation.
The leaders called for tougher sanction mechanisms against tax havens and "uncooperative" financial centres. They also wanted to prevent excessive risk taking through binding guidelines on corporate bonus payments and called for moves to monitor all major cross-border financial institutions through the creation of new watchdogs.
German Chancellor Angela Merkel hosted leaders and finance ministers from Britain, France, Italy, Luxembourg, the Netherlands, Spain and the Czech Republic in a bid to forge a common European position ahead of an April summit of the Group of 20 nations in London.
The EU leaders supported plans to double state funds for the International Monetary Fund to ensure swift and flexible assistance to countries in severe financial difficulties.
They agreed to support discussions at the London summit about a global charter for sustainable economic growth. On the controversial issue of protectionism at time of crisis, the leaders promised to refrain from adopting economic stimulus measures that would distort competition.