G20 European Leaders Vow to Increase Eastern European Crisis Aid

World | February 23, 2009, Monday // 00:00
Bulgaria G20 European Leaders Vow to Increase Eastern European Crisis Aid: G20 European Leaders Vow to Increase Eastern European Crisis Aid German Chancellor Angela Merkel and French President Nicolas Sarkozy were amongst the leaders at the Berlin G20 meeting for European leaders. Photo by finfacts.ie

In a meeting in Berlin Sunday, the European members of the G20 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.

The leaders approved a seven-point plan to help restore confidence in markets damaged 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.

"These are testing times," UK Prime Minister Gordon Brown said. "We've seen the biggest global fiscal stimulus that has ever been done. We've seen the biggest interest rate cut the world has ever had. Today we decided that we need to do even more than that by working together." Citing problems recapitalizing banks in Central and Eastern Europe, Brown said leaders proposed increasing to USD 500 B the IMF's resources for crisis management.

"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.

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