February 22, 2009 / 2:53 PM / 9 years ago

FACTBOX: Chair's summary from European leaders mtg in Berlin

BERLIN (Reuters) - European leaders met in Berlin on Sunday to prepare a common stance on overhauling global financial rules ahead of a broader summit of G20 nations in London on April 2.

Below are highlights from a “chair’s summary” of conclusions from the meeting that was seen by Reuters:


- We are making good progress toward creating a new global financial market architecture.

- We reaffirm our determination to implement the joint decisions of 15 November swiftly and completely.

- We propose that the International Monetary Fund (IMF) and the Financial Stability Forum (FSF) be charged with monitoring and promoting the implementation of the international recommendations on putting the Action Plan into practice.

- We have today underscored once again our conviction that all financial markets, products and participants must be subject to appropriate oversight or regulation, without exception and regardless of their country of domicile. This is especially true for those private pools of capital, including hedge funds, that may present a systemic risk.

- We also agreed that credit rating agencies should be subject to mandatory registration and oversight.

- We have today agreed on advocating reforms to ensure that banks build additional buffers of resources in good times.

- A list of uncooperative jurisdictions and a toolbox of sanctions must be devised as soon as possible.

- The Financial Action Task Force, OECD and FSF should submit proposals in their respective fields to the G20 Finance Ministers meeting in March, for review at the London Summit.

- We will strongly advocate (at the London summit)...the development of an effective early warning system by the IMF and FSF, working in close cooperation.

- We will strongly advocate (at the London summit)...the adoption of principles on compensation practices to prevent bonus payments that contribute to excessive risk-taking.


- The situation (on financial markets) remains fraught...We firmly uphold our commitment to continue to assist systemically-important financial institutions

- As (economic support) measures take effect over the coming months they will tangibly support growth.

- We will come out of this crisis strengthened only if we proceed to implement structural reforms and focus on public spending that improves growth prospects.

- We commit ourselves to implementing our stimulus measures and our financial rescue plans in a manner that limits distortions to competition to an absolute minimum.

- We in the EU need common principles for dealing with impaired assets.


- It is our firm intention to return to the path of a sustainable budgetary policy as soon as possible.

- It is a priority to achieve a breakthrough in the Doha Round of WTO negotiations in the coming months.

- All countries have a duty to resist protectionist tendencies.


- We have agreed today to support doubling the funds available to the IMF.

- We should consider options to reform the IMF’s lending instruments.

- The establishment of supervisory colleges for cross border financial institutions is a key element for improving international cooperation on financial oversight.

- We strongly support the enlargement of the FSF to include emerging market economies and call for this measure to be implemented swiftly in good time before the London Summit.

Compiled by Noah Barkin and Paul Carrel

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