EU Ministers van Financiën gaan akkoord met versterkte samenwerking (en)
EU finance ministers over the weekend agreed on strengthening cooperation in order to avoid future financial crises, as well as on the need to reform the International Monetary Fund i.
The ministers, together with central bank governors on Friday (4 April), signed a so-called memorandum of understanding on co-operation in financial crisis situations.
"The memorandum commits all signatories to cooperate across borders between relevant authorities, both in normal times, in order to ensure preparedness for the management of a potential cross-border crisis situation; and in crisis situations," the document reads.
"Taking into account the global nature of the financial markets and the need for broader international efforts in preserving financial stability, the memorandum can also provide the basis for international cooperation between authorities; and it can be extended to include third-country authorities when necessary," it continues.
The ministers also said that the financial turmoil caused by an international credit crisis last year, will continue to affect EU economies through 2009 and called for "full and immediate disclosure" by the bloc's banks.
"To increase transparency and restore confidence, ministers and governors call on financial institutions to make full and immediate disclosure of on and off-balance sheet risk exposures and losses and on governors to guide this process as appropriate," says a statement by the Slovenian EU presidency.
At their two-day meeting, the ministers also said they needed to improve the way money is spent on healthcare, welfare and pensions, while underlining that there is "no single blueprint" for improvements.
Reform of the IMF
On Saturday (5 April), the EU's finance ministers also agreed on a common position for the upcoming meeting of the International Monetary Fund (12 - 13 April) - the international organisation that oversees the global financial system.
Among other things, the EU is to accept a lower voting quota in the institution, and give a bigger say to emerging economies such as China, India and Brazil.
"EU members are fully committed to reach an outcome that enhances the legitimacy of the IMF by ensuring a fair and adequate representation for all members," said an EU presidency statement.
Under the proposed reforms, the EU, the US and Japan would lose some of their voting share, while that of developing countries would rise from 39.4 to 42.1 percent, according to the AP.