Merkel calls for global financial charter

German leaders are proposing a system to improve transparency for global financial markets at a key European summit on global finance, as well as rules governing executive pay and a stronger role for the International Monetary Fund.

According to a position paper from the Finance Ministry, Germany will seek backing from European government and financial leaders for these and other regulatory measures for the world's financial markets during a meeting on Sunday in Berlin.

"We want to make sure that in the future there are no gaps in the world regarding financial products, market participants or instruments," German Chancellor Angela Merkel said on Saturday.

Heads of government and finance ministers from Britain, Italy, Luxembourg, Spain, the Netherlands and current EU president Czech Republic will attend the meeting aimed at solidifying a common European position ahead an April summit of the Group of 20 advanced and developing nations in London.

Merkel is calling for a "charter of sustainable economic activity" aimed at reducing economic imbalances in hopes of stabilizing financial markets and preventing crises like that triggered by the collapse of US mortgage markets last year.

First Published: Feb 22, 2009 09:25 IST