Monday, October 20, 2008

Multiple summits to discuss economy, leaders say

Multiple summits to discuss economy, leaders sayFrench President Nicolas Sarkozy, left, U.S. President George W. Bush and European Commission head José Manuel Barroso discussed the world economy Saturday. (Evan Vucci/Associated Press)

World leaders will meet to "strengthen and modernize our nations' financial systems" to avoid another crisis like the one that has thrown the international economy into turmoil, U.S. President George W. Bush said Saturday.

After meeting French President Nicolas Sarkozy and head of the European Commission, José Manuel Barroso, at Camp David, Md., the three leaders said they planned a series of summits.

The first meeting would address what has been done to deal with the financial crisis, and "seek agreement on principles of reform needed to avoid a repetition of the problems and assure global prosperity in the future," a joint statement said.

Later summits will consider the steps needed to implement the principles.

The statement said the first summit would be held in the United States after the presidential election on Nov. 4.

Bush said any changes must preserve capitalism.

"As we make the regulatory institutional changes necessary to avoid a repeat of this crisis, it is essential that we preserve the foundations of democratic capitalism — commitment to free markets, free enterprise and free trade," he said.

The three men were following up on a meeting earlier in the week where European leaders called for changes to the international financial system.

On Wednesday, the Group of Eight industrialized countries — Canada, the U.S., Britain, Japan, Russia, Germany, France and Italy — said it would hold a global summit to "remedy deficiencies exposed by the current crisis."

At the time, Sarkozy said the G8 meeting should produce "a new capitalism." On Saturday, he said the problem is international and therefore needs an international solution.

Barroso said "we need a new global financial order."

Bush appeared to back the G8 plan, which called for including countries from outside the group, such as India and China.

Remove speculators, Sarkozy said

On Friday, Sarkozy held discussions on the financial crisis with Prime Minister Stephen Harper in Quebec City as leaders from the French-speaking world gathered for the 12th Francophonie Summit.

Sarkozy spent 24 hours there, and during that time he said a summit is needed to introduce changes that would remove some of the influence speculators have on markets.

"There is no freedom [in capitalism] without a minimum of regulation and supervision," the French president said before leaving the three-day Francophonie meeting early for his trip to the U.S.

Harper said a "new infrastructure" is needed in the world of globalization.

"It's not to say capitalism is flawed — it's to say that governments have a responsibility to create a better infrastructure for the establishment of markets internationally," he said.

Before leaving Canada, Sarkozy, the current head of the European Union, stood with Harper to announce that there will be a Canada-EU trade deal, which will focus on the freer flow of people and also open up more air travel across the Atlantic.

Canada and the EU will start negotiating the details of the agreement next year and could have it finalized by 2010.

Harper said economic troubles make the deal crucial for Canada.

"Without question, these times call for closer economic co-operation among key players in the global economy," the prime minister said.

"Among other things, this means rejecting the frequent tendency in difficult times to turn inward and erect barriers between our economies and our citizens," he said. "Indeed, we must stand against protectionism and work to lower and eliminate barriers."



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