2/18/2011
Sarkozy urges G20 countries "not to fail" on reforms
PARIS, French President Nicolas Sarkozy late Friday urged G20 Finance Ministers and Treasury officials to undertake important reforms to stabilize international markets and prevent risks of another financial crisis like the one that hit the world economy in 2008-2009.
Speaking at the Elysee Palace, where G20 participants and representatives of five "guest" nations were gathered, the French leader pushed for measures that would stop "volatility" and called on them to regulate certain markets, including those for "derivatives, currencies and capital flows".
"Everyone must commit and take measures," he said, noting that to remain "immobile" would have consequences that are unacceptable.
France, which currently has the presidency of the G20, is pushing for mechanisms that would have greater oversight on financial transactions and for more intervention to prevent price volatility for raw materials and on currency markets but a number of G20 members are opposed to such proposals.
Instead, there is a vague agreement to examine a system of "indicators" that would be used to measure the G20 economies and then move forward with discussions on reforms.
"We will not accept that the conditions that brought on the crisis repeat themselves," Sarkozy told the ministers.
He said that concerted international efforts were the "only path to growth" and he warned against "interminable debates" on the issue of indicators that would be used to measure economic fundamtentals.
"Immobility and the status quo are forbidden," he affirmed.
"A market that does have rules is not a market. A market without rules is the law of the strongest," he warned.
He said he recognized that the French agenda for the G20 was "ambitious" but he warned that something has to be done now to halt volatility and introduce regulation in certain areas.
"Reform of international currency markets can wait no longer," he stressed, urging an expansion of the role of the International Monetary Fund (IMF), and he said there was a "clear willingness" for this.
"The role of the IMF must be reinforced or boosted," and it must be "given stronger means and surveillance powers," he observed, noting this is an "absolutely major question".
He also remarked that reforms taking place now in certain Arab countries were vital and he indicated that "the success of the economic reforms in Egypt and Tunisia will be a success for the G20".
"France is taking the path of prudence" with its ambitious agenda for the G20, he said ironically.
"If France had chosen an agenda that was not ambitious, it would be choosing the most imprudent path," he stated.
"You do not have the right to fail," he told the G20 participants.
http://www.kuna.net.kw/NewsAgenciesPublicSite/ArticleDetails.aspx?id=2146153&Language=en
Sarkozy urges G20 countries "not to fail" on reforms
PARIS, French President Nicolas Sarkozy late Friday urged G20 Finance Ministers and Treasury officials to undertake important reforms to stabilize international markets and prevent risks of another financial crisis like the one that hit the world economy in 2008-2009.
Speaking at the Elysee Palace, where G20 participants and representatives of five "guest" nations were gathered, the French leader pushed for measures that would stop "volatility" and called on them to regulate certain markets, including those for "derivatives, currencies and capital flows".
"Everyone must commit and take measures," he said, noting that to remain "immobile" would have consequences that are unacceptable.
France, which currently has the presidency of the G20, is pushing for mechanisms that would have greater oversight on financial transactions and for more intervention to prevent price volatility for raw materials and on currency markets but a number of G20 members are opposed to such proposals.
Instead, there is a vague agreement to examine a system of "indicators" that would be used to measure the G20 economies and then move forward with discussions on reforms.
"We will not accept that the conditions that brought on the crisis repeat themselves," Sarkozy told the ministers.
He said that concerted international efforts were the "only path to growth" and he warned against "interminable debates" on the issue of indicators that would be used to measure economic fundamtentals.
"Immobility and the status quo are forbidden," he affirmed.
"A market that does have rules is not a market. A market without rules is the law of the strongest," he warned.
He said he recognized that the French agenda for the G20 was "ambitious" but he warned that something has to be done now to halt volatility and introduce regulation in certain areas.
"Reform of international currency markets can wait no longer," he stressed, urging an expansion of the role of the International Monetary Fund (IMF), and he said there was a "clear willingness" for this.
"The role of the IMF must be reinforced or boosted," and it must be "given stronger means and surveillance powers," he observed, noting this is an "absolutely major question".
He also remarked that reforms taking place now in certain Arab countries were vital and he indicated that "the success of the economic reforms in Egypt and Tunisia will be a success for the G20".
"France is taking the path of prudence" with its ambitious agenda for the G20, he said ironically.
"If France had chosen an agenda that was not ambitious, it would be choosing the most imprudent path," he stated.
"You do not have the right to fail," he told the G20 participants.
http://www.kuna.net.kw/NewsAgenciesPublicSite/ArticleDetails.aspx?id=2146153&Language=en
