Spain, Argentina call for G20 action

10th February 2009, Comments 0 comments

Leaders of Spain and Argentina want to see concrete measures adopted in creating a new financial order at the upcoming summit in April.

MADRID – Concrete measures to reform the global financial system, including a path towards the abolition of tax havens, must be adopted at an April G20 summit, the leaders of Spain and Argentina said Monday.

Spanish Prime Minister Jose Luis Rodriguez Zapatero said the last meeting of the group of advanced and developing nations in Washington in November focused on discussing what is wrong with the system, while the 2 April follow-up gathering in London must create "a new financial order".

"London has to be a summit of decisions," he told a joint news conference in Madrid with visiting Argentine President Cristina Kirchner.

The International Monetary Fund (IMF) must be equipped with a system to oversee the global financial system "which we are all willing to support" while tax havens should be eliminated "in a short period of time", Zapatero said.

Both the IMF and the World Bank must be reformed to create a more equitable distribution of decision-making power among traditional heavyweights like the United States and emerging economies, he added.

Kirchner said the meeting should be used to discuss whether or not the US dollar should continue to be the world's reserve currency and she called for a reform of multilateral credit institutions to make them better equipped to face up to the global financial crisis.

The London summit needs to "design, propose and build active tools and policies to combat this crisis," said Kirchner, adding it cannot be another series of meetings to discuss the global financial crisis.

On 22 February, Berlin will host a meeting of European countries to work on a common position for the London summit.

The heads of state or government from G20 members Britain, France, Germany and Italy are to attend, along with the leaders of the European Commission, the Netherlands and Spain.

The European Union also announced Monday an extraordinary summit at a date to be confirmed later this month, to coordinate action amid concerns about a return to protectionism.

[AFP / Expatica]

0 Comments To This Article