28 March 2008

UK and France agree on closer cooperation

The UK and France agreed on closer cooperation at EU level and international level. In a joint summit declaration both countries agreed on the need for greater transparency in financial markets to ensure that banks make full and prompt disclosure of the scale of write-offs, including finding ways to give greater certainty on the valuations of complex financial assets. They also agreed on the need to reinforce risk management and improve the functioning of financial markets.

Both, Sarkozy and Brown, urge further discussion with the US and others on measures to promote financial stability, including at the upcoming meetings in Washington of G7 Finance Ministers and the Spring Meetings of the IMF and World Bank.

They also agreed on completely implement the EU roadmap agreed at the October 2007 ECOFIN, which encompasses reinforcement of the European framework and arrangements on cross-border financial supervision and the management of financial crisis situations.

The IMF, together with the Financial Stability Forum should provide for “a credible and authoritative early warning system for the world economy and international financial system.”