German Chancellor Angela Merkel Tuesday evening emphasized the importance of confidence in the financial market to defend her guaranteed promise and massive bailout plan this week.
"Confidence is the most important currency of the financial markets, however, it has been now ruined by greed, speculation and mismanagement," said Merkel in an emergency session of parliament on the financial crisis in Berlin on Tuesday evening.
"It is very important to restore confidence in the market," she said, and both stricter international rules and short-term rescue measures are needed to realize the goal.
However, Merkel emphasized the purpose of the German government's promise and bailout plan was not for the sake of the banks, but for the whole economy and whole German citizens.
Merkel also wants some changes of current bank management and payment system, saying: "We need incentives for banks to prevent from a single-minded focus on short-term strategy," and "the decisive standard for managers' pay should emphasize more on the long-term success of the company, rather than short-term prosperity."
Merkel's comments show a growing consensus in some European countries that taxpayers should expect something in return for funding bailouts and bank managers should be made liable to repay part of the losses they caused, according to the report of Bloomberg.
Source:Xinhua
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