German Chancellor Angela Merkel led the way Sunday in driving forward reforms to the world's financial systems, as the host of European talks in Berlin ahead of April's summit of the Group of 20 (G20) major economic powers, according to dpa. In a meeting reminiscent of Merkel's glory days during Germany's G20 presidency in 2007, the German chancellor was instrumental in forging a joint European response to the world's current economic turbulences. Amidst a flurry of handshakes, kisses and comments on the inclement weather on a wet winter day, the chancellor welcomed as old friends the leaders of France, Britain, Spain, Italy and the Netherlands, as well the Czech and Luxembourg premiers attending in their European Union (EU) capacities. European Commission President Jose Manuel Barroso and the President of the European Central Bank Jean-Claude Trichet were also invited to the talks which included the finance ministers of the eight EU member states. Summarising the talks, Merkel said it was paramount to re-establish trust, and that this could only be achieved, "if the people in our countries feel that we are undertaking a joint effort and have understood that we must learn lessons from this crisis." The chancellor's overarching message was that there could no longer be "blank spots" where regulations don't apply - no financial market, product or those involved in investment markets should remain outside the regulatory net. This includes a demand for the oversight of hedge funds, which the German delegation has managed to incorporate into the European summary statement, despite initial reticence from Britain, where many hedge funds are based. A further coup for Merkel was the proposal to draw up a list of countries and regions which "refuse to cooperate internationally," with a view to imposing sanctions against tax havens or other regions engaged in murky business deals. The language at Sunday's summit was far stronger than the guidelines drawn up at the last G20 meeting in Washington in November, reflecting increased market turbulences but also adding credence to Merkel's promise that "words will truly be followed by actions." The Berlin talks were seen as a stepping stone, bridging the progression from Washington to London, as well as throwing forward to lasting developments beyond the G20 summit in April. One of Merkel's key proposals incorporated into the joint European demands is a global charter for sustainable economic activity, to provide a revised framework for the world's financial systems. The aim to form a lasting set of guiding principles also embraced action on climate change, and the pledge to invest in ecologically sustainable economic practices. Merkel was successful in ushering through Germany's wish for a strengthened International Monetary Fund (IMF). The European leaders issued a joint call for a doubling of IMF funds, as well as beefing up the institution's role in shepherding the global financial markets. Merkel had initially adopted a "wait and see" approach to the global economic downturn in the latter half of 2008 and was noted for her lack of input on the world stage at the time of the Washington summit. Realising that the financial storm would not blow over, the German chancellor has since stepped up to the task and used her trademark consensus approach to cajole a unified European position out of her colleagues. Sunday's meeting reached out beyond the inner circle of European states, in a bid to represent the broadest possible consensus at the London summit. Guests at the table included the Czech Republic's Prime Minister Mirek Topolanek, whose country currently holds the EU's six-month rotating presidency. Luxembourg's Prime Minister Jean-Claude Juncker, the president of the euro group, was present on behalf of the 16-member eurozone. Despite manoeuvring to achieve broad agreements, Merkel adopted a strong approach in her condemnation of US car industry subsidies. "In the name of fair world trade," Merkel said, "our car manufacturers in Europe should have a fair chance compared to car makers in other parts of the world." Germany, she added, was already in talks with the new US administration to address the problem.
