Europe Wants "Global New Deal" To Fight Crisis

Tuesday, February 24, 2009 | Tag Cloud

By David Haggith, Worthy News Correspondent

LONDON, UNITED KINGDOM (Worthy News) -- Europe was seeking a new "global deal"  Tuesday, February 24, after British Prime Minister Gordon Brown launched an initiative that includes unprecedented new regulations for financial markets and hedge funds to tame the worst economic crisis in eight decades.

Brown  said in Berlin that the world needs "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."

He spoke Sunday, February 22, at a meeting of heads of states and finance ministers of Europe's largest economies, who attempted to formulate a common economic position ahead of the Group of 20 nations summit on April 2 in London.

That appeared music to the ears of German Chancellor Angela Merkel, who hosted the meeting. She later said that everyone agreed that, "All financial markets, products and participants including hedge funds and other private pools of capital which may pose a systematic risk must be subjected to appropriate oversight or regulation."


The plan was supported by all participating top officials from Britain, France, Germany, Italy, Luxembourg, Spain, the Netherlands and the Czech Republic, she added.

French President Nicolas Sarkozy explained to reporters that the world needs to respond with a long term plan. "We're not talking about superficial measures now or transitional measures -- we're talking about structural measures, which need to be taken."

He had been criticized by the Czech Republic, which currently chairs the European Union, for perceived protectionist measures, including suggesting that French car makers will receive massive aid only if they close factories abroad, including in Eastern Europe.  Czech and French ministers have meanwhile agreed to hold talks on the issue, Radio Prague reported.

British Prime Minister Brown told the Cable News Network (CNN) last month that world leaders failed to recreate adequate global economic institutions.

"The problem is the institutions we built sixty years ago are out of date," he said, referring to the World Bank and International Monetary Fund, established at the end of World War Two. "We've got to be far bolder and far more imaginative," Brown said, adding that leaders should also use the crisis to establish a "greener, more digital and more highly skilled economy."


Both Brown and Merkel have urged the creation of a new global regulatory agency that will prevent "short term irresponsible risk taking and excess."

British banks have been suffering at least as hard as U.S. banks, and Germany's government is looking into forcibly nationalizing financial institutions, including the bank Hypo Real Estate which already received 102 billion Euros ($130 billion) from the government in loans and loan guarantees.

Germany and other major European economies are also preparing to pay much for bailing out struggling economies of smaller Eastern European states, including Hungary and Latvia.

Experts say Western European economies are under pressure to agree on a   global systems that may prevent this kind of fallout to themselves in the future.


Merkel decried "blank spots" in the world today where regulations currently do not apply, and European leaders agreed that part of the transformation will include getting tough on international tax havens.

The United States already filed a lawsuit last week to force United Bank of Switzerland (UBS) disclose the identities of as many as 52,000 U.S. customers who allegedly evaded taxes, barely a day the bank admitted to tax fraud and agreed to pay 780 million dollars in settlement charges.

The European Union has made clear it could take similar steps.

Talks on these and other issues are expected to be high on the agenda at the upcoming Group of 20 nations in London. The G-20 includes the G-7 leading industrialized nations -- Canada, France, Germany, Italy, Japan, the United Kingdom and the United States -- and the world's largest developing economies: Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea and Turkey, plus the EU.

The leaders of the International Monetary Fund and World Bank are also due to attend the London gathering. (With some reporting by Worthy News' Europe Bureau Chief Stefan J. Bos).

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2 thoughts on “Europe Wants "Global New Deal" To Fight Crisis”

  1. When The World Gets Her New Deal

    "For, behold, I create new heavens and a new earth: and the former shall not be remembered, nor come into mind.
    But be ye glad and rejoice for ever in that which I create: for, behold, I create Jerusalem a rejoicing, and her people a joy.
    And I will rejoice in Jerusalem, and joy in my people: and the voice of weeping shall be no more heard in her, nor the voice of crying.
    There shall be no more thence an infant of days, nor an old man that hath not filled his days: for the child shall die an hundred years old; but the sinner being an hundred years old shall be accursed.
    And they shall build houses, and inhabit them; and they shall plant vineyards, and eat the fruit of them.
    They shall not build, and another inhabit; they shall not plant, and another eat: for as the days of a tree are the days of my people, and mine elect shall long enjoy the work of their hands.
    They shall not labour in vain, nor bring forth for trouble; for they are the seed of the blessed of the LORD, and their offspring with them.
    And it shall come to pass, that before they call, I will answer; and while they are yet speaking, I will hear.
    The wolf and the lamb shall feed together, and the lion shall eat straw like the bullock: and dust shall be the serpent's meat. They shall not hurt nor destroy in all my holy mountain, saith the LORD." Isaiah 65:17-25

    Want To Deal?

    "And it shall come to pass, that whosoever shall call on the name of the LORD shall be delivered: for in mount Zion and in Jerusalem shall be deliverance, as the LORD hath said, and in the remnant whom the LORD shall call." Joel 2:32

    Turn To The LORD!

  2. It's going to start with a global effort to raise the economy... Then it'll get to where everyone will want a total unity. So many people want "peace", and there will come a man who will promise this "peace"... It's all in Revelation, people. The End Times are coming, and our Lord will be coming back for His Bride the Church! We should pray without ceasing, for our president, our nation, the unsaved... We should do everything we can to help bolster the Church, so that as many people as possible can be brought back to their Father's House and be spared the Tribulation! The End Times are very close, brothers and sisters. Be steadfast in the faith, and spread the Good News of the Christ's Resurrection, because we may not have much time left!

    Glory to the Lord our God and His Son forever!

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