European Conclusions on G20 summit

07 November 2008

European leaders discussed their common position and agreed to propose that ‘no market segment, no territory, and no financial institution should escape proportionate and adequate regulation or at least oversight’.

The informal meeting discussed the common European position for the G20 meeting in Washington on 15 November and agreed on four main principles including proportionate and adequate regulation or at least oversight”.

 

Five approaches were agreed that could be adopted on the G20 meeting.

These include to “decide that no market segment, no territory, and no financial institution should escape proportionate and adequate regulation or at least oversight”. Further issues include the treatment of rating agencies, codes of conduct to avoid excessive risk-taking, the role of the IMF and the FSF, and accounting issues.

 

A period of 100 days starting on 15 November should be used for drawing up measures to implement the principles that have just been restated.

 

European Conclusions

 

Agreed principles:

(i) No financial institution, no market segment and no jurisdiction must escape proportionate and adequate regulation or at least oversight.

 

(ii) The new international financial system must be based on principles of accountability and transparency.

 

(iii) The new international financial system must allow risks to be assessed so as to prevent crises.

 

(iv) Give the IMF a central role in a more efficient financial architecture

 

The five specific approaches:


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