'Stick together or sink together': European Commission president
Leaders from 43 nations meet for two days of discussions focused on the global financial meeting at the Asia-Europe Meeting in Beijing.(David Gray/Associated Press)Unprecedented measures are needed to deal with the global financial meltdown, says José Barroso, president of the European Commission.
The global economic turmoil will dominate discussions at this week's Asia-Europe summit meeting, Barroso said Thursday before the two-day, 43-country meeting, which begins Friday in Beijing.
Barroso said he expects the forum to help work toward consensus before the global financial crisis summit, which is being held in Washington on Nov. 15.
The world is facing its worst financial crisis in 70 years, Barroso said, adding it's crucial for nations to "stick together or sink together."
The purpose of the biennial Asia-Europe meeting, which began 12 years ago, is to narrow the diplomatic distance between two continents.
It is expected that the leaders at the meeting will discuss pooling foreign exchange reserves to facilitate trade, investment and tourism in the region, and beefing up central bank credit lines. Climate change and human rights are also expected to be discussed.
"We need a co-ordinated global response to reform the global financial system. We are living in unprecedented times and we need unprecedented levels of global co-ordination," Barroso said.
New model neededThe solution to the financial crisis must be based on principles of transparency, responsibility, cross-border supervision and global governance, said the former Portuguese prime minister.
European Commission President Jose Barroso is calling for unprecedented levels of global co-ordination to deal with the financial crisis.(Andy Wong/Associated Press)"The latest events have made clear that the current model of financial regulation and supervision needs to be revamped at the international level," Barroso said. "We need Asia to be on board."
China could have a greater voice in international financial institutions in the near future and must play an integral part in helping to resolve the current global economic crisis, he said.
Diplomats attending the meeting told Reuters the European Commission hopes to win a commitment from China to use its clout to help shape the reforms and tackle the economic imbalances at the root of the meltdown.
"I very much hope that China gives an important contribution to the solution of this financial crisis," Barroso said. "I think it's a great opportunity for China to show a sense of responsibility."
Although Asian economies have had less direct exposure to the toxic subprime mortgages that are wreaking havoc on the markets in Europe and North America, analysts are forecasting the countries should expect to take a major hit from a drop in exports and foreign investment.
The vice-president of the Bank of China, the country's central bank, said he expects the global financial crisis will start to be felt in Asia over the next six months.
"We shouldn't think this is going to be over soon. The key issue for Asian countries is to prevent the banking crisis from turning into to a currency crisis," Zhu Min said in remarks to the Asia-Europe Business Forum in Beijing.
"This is going to be a long and cold winter," Zhu said.
With files from the Associated Press and Reuters
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