Finance ministers or leading financial officials from 39 Asian and European nations and the European Union agreed to issue the Tianjin Initiative and establish an ASEM Contingency Dialogue Mechanism for emergent economic and financial events, at the just-closed sixth Asia-Europe Finance Ministers' Meeting (ASEM FMM).

The ASEM contingency dialogue mechanism would serve as an effective channel for ASEM member countries to conduct dialogues on economic and financial policy response and coordination of rehabilitation and relief actions, said Li Yong, vice finance minister of China.

"To be established under the ASEM FMM framework, the dialogue mechanism is a resolution scenario against such events from the economic angle, and the coordination among the Asian and European members is exoteric, not excluding supports and suggestions from the outside," said the official.

Following the world economic crisis in the 1930s, a financial crisis hit southeastern Asian countries eight years ago and imposed profound and lasting influences on the global economy.

In the context of globalization, various economic and financialcrises spread beyond the territorial boundaries and affect economies and individual lives, Li said. "The dialogue mechanism'sestablishment will help strengthen the ASEM capability of responding to emergencies through institutional building and raising the common awareness of joint responsibilities on crises or disasters prevention and management."

Besides the dialogue mechanism, the Tianjin Initiative also included an evaluation to the role of ASEM Trust Fund (ATF), established in 1998, in enhancing financial cooperation between Asia and Europe, and a recognition to strengthen capability building in financial fields among the ASEM members.

The one-day meeting was held on Sunday in Tianjin Municipality,north China. As chairman country for the meeting, China advocates to resolve disputes through dialogue and to enhance financial cooperation through concrete proposals among the ASEM members.

"As an important fruit," Li said, "the Tianjin Initiative will enhance the common development and prosperity for both Asian and European countries through closer financial cooperation among them."

Source: Xinhua