Page last updated at 21:35 GMT, Wednesday, 15 October 2008 22:35 UK

G8 backs financial reform summit

Falling share prices on the Seoul stock exchange
Markets around the world have continued to slide

The leaders of the G8 major industrialised nations have agreed to hold a summit with other states to discuss global financial reform.

The move came as French President Nicolas Sarkozy said EU leaders had backed a plan to aid the bloc's banking sector at a summit in Brussels.

UK PM Gordon Brown has called for the rebuilding of the IMF to help regulate the world's financial systems.

Meanwhile, shares across the world have fallen sharply amid fears of recession.

The Dow Jones index in New York sank nearly 8% and shares in Brazil by 10%. There were sharp falls in London and on other European markets.

In a joint statement, the leaders of the G8 countries - the US, UK, France, Italy, Germany, Canada, Japan and Russia - said that changes had to be made to the "regulatory and institutional regimes for the world's financial sectors to remedy deficiencies exposed by the current crisis".

The statement added: "We look forward to a leaders' meeting with key countries at an appropriate time in the near future to adopt an agenda for reforms to meet the challenges of the 21st Century."

Gordon Brown says global action is needed to deal with the financial crisis

Mr Brown told the BBC that the meeting would take place in "the next few weeks".

In an interview with BBC Europe editor Mark Mardell, he said: "I believe that the action the G8 ministers are taking this evening... signifies a determination on our part at all times now to work together to make sure we can come through this financial difficulty fairly to all but with global action that is necessary to deal with this global crisis."

Speaking to reporters on Wednesday ahead of the EU summit in Brussels, Mr Brown made an impassioned plea for a global summit to reform the International Monetary Fund (IMF), to help regulate the world's financial systems.

He also called for the creation of an early warning system for the international economy and for more cross-border supervision of multinational financial companies.

At the EU summit, the 27-member bloc rallied behind plans agreed on Sunday by officials from the 15-nation eurozone, AFP news agency quoted French President Nicolas Sarkozy as saying.

The plan includes guarantees on bank deposits to 100,000 euros ($136,760; 77,760) within a year.

The proposal is one of several due to be tabled at the summit, and follows a commitment last week to raise the guarantee level to 50,000 euros.


FTSE 100
23.70 0.44%
19.54 0.34%
Cac 40
14.48 0.38%
Dow Jones
78.53 0.76%
35.31 1.58%
BBC Global 30
20.65 0.36%
Data delayed by at least 15 minutes

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific