The common demands of Germany, France and the UK have been "fully implemented and adopted as the European position,” said Chancellor Angela Merkel after a preparatory meeting of the European G20 states in Brussels.
The Chancellor, the French President Nicolas Sarkozy and the British Prime Minister Gordon Brown called for appropriate executive remuneration in a joint letter to the Swedish EU presidency two weeks ago. Bonus payments should be made dependent on the success of the company, remuneration should be made more transparent, and controls stepped up, they demanded. These points will now be raised at the G20 summit meeting of the most important industrialised nations and emerging economies in the name of the entire European Union.
The Chancellor underlined the fact that the positions agreed in Brussels have the support of all 27 member states of the European Union. Of the EU states, France, the United Kingdom, Italy and Germany belong to the G20.
Agreeing on concrete steps
Photo: REGIERUNGonline / Bergmann
Common positions agreedAngela Merkel explained that another goal is to ensure that governments can no longer be blackmailed by major banks on which entire financial systems depend. If institutes of this sort fail it cannot be the sole responsibility of the state to pick up the financial pieces. Legal provisions are needed to regulate this – the EU is calling for banks to be required to hold higher reserves.The Europeans also aim to work for the charter for sustainable economic activity in Pittsburgh. Sustainability must be firmly anchored as the guiding principle of the global economy. In addition to these principles, "concrete steps must be agreed as to how we can enshrine this charter in writing,” stated the Chancellor.
Taxing speculation on financial markets
Both the Chancellor and the Austrian Chancellor Werner Faymann advocated taxing speculation. Angela Merkel pointed out, however, that they also agreed that a tax of this sort only made sense at international level. Otherwise speculators would simply move to markets on which no such tax existed.
The Swedish EU presidency is now charged with determining whether or not this position has the support of the rest of the EU. "There are certainly a number of member states that would agree to an international agreement of this sort about taxing financial transactions,” said Angela Merkel. She was satisfied with the outcomes of the meeting, and said, "Europe has done its homework”.
The Group of Twenty (G20) brings together the 19 most important industrialised nations and emerging economies and the European Union. It was founded in 1999. The G20 is an informal forum that cooperates on international financial systems issues. The next meeting is scheduled for 24 and 25 September in Pittsburgh.
