Meeting at an informal summit in Brussels on 6 November, EU heads of state and government agreed on "common principles […] to build a new international financial system," insisting that the Washington summit on 15 November would "deliver real decisions swiftly".
Measures agreed in Washington should be implemented within "100 days starting on 15 November," the leaders said, leaving US President-elect Barack Obama just over a month to make his input.
In a joint statement, the 27 leaders agreed to bring the following to Washington:
- "Submitting rating agencies to registration [and] surveillance."
- Adopt principles to ensure the "convergence of accounting standards".
- "Decide that no market segment, no territory and no financial institution should escape […] regulation or at least oversight."
- "Establish codes of conduct to avoid excessive risk-taking in the financial sector", including on the "remuneration" of executives.
- "Give the IMF the initial responsibility" and "necessary resources" for "recommending the measures to restore confidence and stability" in the international financial system.
EU leaders also agreed on the necessity to "look beyond the financial crisis" and take measures to address the worsening economic situation. The European Commission was mandated to submit proposals in that direction ahead of the next EU summit in December.
"The unity of the EU must also be reflected in effective consultation on each Member state's economic policy response to the present situation," reads a key paragraph of the joint statement.
Divisions have emerged in recent days over what measures the EU should take to tackle a possible recession in Europe. Meeting on Tuesday (4 November), finance ministers failed to reach agreement on the issue, delaying a decision until later (EurActiv 5/11/08).
Spain to attend G20 summit in Washington
In another step forward, EU leaders found a solution to Spain's bid to be represented at the G20 meeting in Washington, to which only four EU countries - the UK, France, Germany and Italy - were invited. France was in fact holding two seats at the G20 meeting, one as holder of the rotating EU Presidency and the other in its capacity as a large industrial nation. In a gesture to the Spanish Prime Minister, Sarkozy ceded the first seat to Spain.
