• Germany's news in English

Merkel calls for tighter rules at G20 summit

The Local · 15 Nov 2008, 12:01

Published: 15 Nov 2008 12:01 GMT+01:00

Facebook Twitter Google+ reddit

Speaking ahead of the meeting, Merkel told the Sueddeutsche Zeitung, “I see a number of actors with which we can start working – there is for one, the forum for financial stability, in which the regulatory authorities and the central banks of the industrial countries work together.

“This forum has already prepared a whole row of suggestions, for example for the transparency of the finance markets and the regulatory structures, which are at least in part already implemented. This forum for financial stability must be expanded to include important developing countries.

“We must also consider how we can improve the cooperation between the national regulatory authorities and the various institutions, for example the international monetary fund and the forum for financial stability.”

She also said governments must better dovetail the bank-specific viewpoint of the regulators with the market-related viewpoint of the IMF, and strengthen the latter’s role. “In general, there must be no more blind spots in which risks can be built up unseen,” Merkel said.

Merkel has positioned herself at the more interventionist end of views at the Washington summit, saying the German social market model should become the basic model of the world.

“We are experiencing the excesses of the markets at the moment. These must be limited so that such a crisis is not repeated,” she told the paper.

She said the crisis was demonstrating the kind of damage which could be wreaked when what she called the necessary insight was missing internationally and structural limits were not tight enough.

“The international community must now ensure that they work together, and I expect that the banks support this process,” she said. “Therefore I have no understanding for the warnings against too much regulation and state influence – now, shortly after the state has prevented the situation from worsening. That is unreasonable.”

Her comments came as several organisations warned against introducing too much regulation. The German chamber of industry and trade, DIHK, warned the politicians not to go too far. Manager Martin Wansleben told the Tagesspiegel newspaper, too much regulation, “increases financing costs for companies, and reduce the business options.” He called for the G20 states to act reasonably.

Story continues below…

He said he supported the German government’s proposal to create an international credit register which he said could make clear where risks lay.

But the German Industry Association, BDI, was more reserved, the paper reported, calling for concrete suggestions for a lasting stabilisation of the finance markets to limit the affect of the finance crisis on the real economy and avoid a further weakening of the world economy.

Jürgen Großmann, head of energy giant RWE said more regulation was not needed. “We do not need more regulation which strangles economic initiative, but improved international cooperation, for example, in the financial area, in order to close regulatory gaps,” he told the Handelsblatt newspaper.

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Today's headlines
Obama to visit Berlin in last presidential trip to Germany
President Barack Obama and Chancellor Angela Merkel during a Berlin trip in 2013. Photo: DPA.

The White House announced on Tuesday that US President Barack Obama will be paying one last unexpected visit to the German capital - his last before he leaves office.

Hostility towards minorities 'widespread in Bavaria'
A village in southern Bavaria. Photo: DPA.

Hate and hostility towards groups deemed to be different are not just sentiments felt by fringe extremists, a new report on Bavaria shows.

Hated RB Leipzig emerge as shock challengers to Bayern
RB Leipzig. Photo: DPA

RB Leipzig's remarkable unbeaten start to the Bundesliga season has seen them suddenly emerge at the head of the pack chasing reigning champions and league leaders Bayern Munich.

Munich taxi driver in hospital after attack by British tourists
Photo: DPA

A taxi driver had to be hospitalized in Munich on Monday evening after three British tourists refused to pay their fare and then attacked him.

German police carry out nationwide anti-terror raids
Police outside a building in Jena during raids on Tuesday. Photo: DPA

Police forces in five German states carried out raids on Tuesday morning with the aim of tackling the financing of terror groups, police in Thuringia have reported.

The Local List
10 ways German completely messes up your English
Photo: DPA

So you've mastered German, but now it's time to learn English all over again.

Iconic German church being eroded away by human urine
Ulm Minster towering over the rest Ulm surrounding the Danube. Photo: Pixabay

It will now cost you €100 to spend a penny. That’s if you get caught choosing to pee against the world-famous Ulm Minster.

German small arms ammo exports grow ten-fold
Photo: DPA

The government has come in for criticism after new figures revealed that Germany exported ten times the quantity of small arms ammunition in the first half of 2016 as in the same period last year.

14-year-old stabs 'creepy clown' in prank gone wrong
File photo: DPA.

A 16-year-old in Berlin decided he wanted to scare some friends, but his plot backfired in a violent way.

Four Ku Klux Klan groups active in Germany, says govt
An American member of the KKK at a gathering in Georgia. Photo: EPA.

The German government estimates that there are four Ku Klux Klan (KKK) groups currently active in the country, according to a report by the Süddeutsche Zeitung (SZ) on Tuesday.

Germany's 10 most weird and wonderful landmarks
Sponsored Article
Last chance to vote absentee in the US elections
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd