The world needs a “global New Deal” to combat the economic crisis affecting all nations, Britain’s Prime Minister Gordon Brown said.
Brown spoke in Berlin at a Sunday meeting of the leaders of Europe’s largest economies as they struggle to cope with the crisis impacting banks, homeowners, businesses and employees worldwide.
“We need a global New Deal — a grand bargain between the countries and continents of this world — so that the world economy can not only recover but so the banking system can be based on … best principles,” Brown said.
German Chancellor Angela Merkel, the host of the meeting, urged nations to work together to deal with the crisis, CNN reported.
“Confidence can only be restored if people in our countries feel that we are pulling in the same direction and have understood that we really must learn lessons from this crisis,” she said.
She proposed the formation of a new “institution” that will “take on more responsibility for global [financial] mechanisms.”
The Europeans favor tighter regulation of international financial markets, according to CNN.
The meeting came ahead of a major conference in London scheduled for April, which will bring together the G-7 leading industrialized countries – the U.S., the United Kingdom, Japan, France, Italy, Germany and Canada — as well as the European Union and the world’s largest developing countries, including China, India and Russia.
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