Merkel sees financial markets stabilising

Merkel sees financial markets stabilising
Photo: DPA
German Chancellor Angela Merkel on Monday said she believed the world’s financial markets were beginning to stabilise months after sparking a global economic downturn.

“We have to apply ourselves now, and it won’t be easy, but we’ll make it through,” she told the latest edition of glossy magazine SuperIllu. “The financial markets appear to be stabilising already.”

She said she was cautiously optimistic about how the German economy would develop this year, but that would take time for the country’s financial sector to recover completely from the crisis.

Merkel also said the world’s leading economies needed to redouble their effort to create “stricter rules for the transparency of financial products” such as the asset-backed securities widely blamed for the subprime lending crisis. The conservative chancellor also said Germany’s social market economy could serve as an example to other nations.

“I’m convinced if the entire world respected the basic concepts of social-market economics then it wouldn’t have come to such excesses on the markets,” she said.

Merkel also said Berlin considered new US President Barack Obama open to closer cooperation on important issues such as setting up global rules for the international financial markets, global warming and working with Russia. “The results will be decisive,” she told the magazine.