European Union (EU) leaders gathered in Brussels on Friday in a bid to hammer out a common plan to rescue the floundering global financial system.
EU heads of state and government will discuss a 10-page proposal put forward by the bloc's French presidency, which will be presented in Washington on Nov. 15, at a meeting of the Group of 20 leading world economic powers.
The core of the plan will be to tighten global financial supervision and revise the rules of international finance.
Under the plan, international financial institutions, notably the International Monetary Fund (IMF) and the World Bank, will be given more power and emerging economies like China and India will play a greater role in them.
The plan also calls for the establishment of an information network as well as an early warning system to detect risks to the global financial system.
Besides, it recommends increased transparency in financial markets, compulsory registration and monitoring of credit rating agencies, new codes of conduct to prevent bank managers from taking excessive risks and harmonization of international accounting and bank capitalization rules.
However, it will not be easy for French President Nicolas Sarkozy to sell the plan to his colleagues Friday as divergences remain among EU member states.
Some EU nations have complained that the plan is too detailed and ambitious, which might lead to over-supervision of the financial market.
The Czech Republic, which is to take over the rotating EU presidency in the first half of 2009, hopes that the bloc would put forward a set of principles at the Nov. 15 summit and discuss the details at a larger stage.
Source: Xinhua
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