Beijing -- German Chancellor Angela Merkel on Friday urged greater transparency and firmer controls over financial markets as part of a solution to the global financial turmoil.

Merkel put forward a four-point proposal to 45 Asian and European leaders at the biannual Asia-Europe Meeting (ASEM) in Beijing.

She listed greater financial transparency as the highest priority for supporting global recovery; the need for a new structure of incentives; more control over higher risk equities and a firmer role for the International Monetary Fund as a "guardian of the financial system."

Moreover, in an earlier meeting with Chinese President Hu Jintao, Merkel stressed the importance of building a stronger international cooperation as well as a new financial system to overcome the financial crisis.

Following Germany's support after the devastating Sichuan earthquake in March Merkel said, "We are ready to work even closer with China, especially in times of economic difficulties."

Germany's support helped to smooth German-Chinese relations after past fall outs. President Hu Jintao recognized Germany as the European country, "which helped China most after this catastrophe."

"This is a clear sign of friendship from the German government to the Chinese people," he added.

DPA/Expatica