Sarkozy unveils finance overhaul demands

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SARKOZY UNVEILS FINANCE OVERHAUL DEMANDS

Thursday, 16 October 2008 12:23:00 GMT

French President Nicolas Sarkozy was handed a mandate by his EU colleagues Thursday to push for a complete overhaul of the financial system at a summit with US counterpart George W. Bush this weekend.

"We do not have the right to miss this opportunity for reconstructing our system of finance in the 21st century," Sarkozy said at the end of a two-day summit in Brusssels dominated by the financial crisis.

"We have a mandate now to discuss this with the President of the United States."

Sarkozy, who is due to hold talks with Bush at his Camp David retreat on Saturday, was speaking after the 27 EU leaders endorsed calls for an overhaul of the financial system in the wake of the turmoil on financial markets.

The French leader, whose country holds the revolving presidency of the EU, said he wanted to raise a whole range of root and branch reforms in his talks with Bush including a revamp of the International Monetary Fund.

"I really do want to raise the question of the future of the IMF and its role," he said, accusing the institution of drifting from its initial role in providing assistance for developing nations into becoming a de facto ratings agency.

He also called for issues such as big bonuses and sweeping currency reforms to be put on the table as a precursor to a wider international summit on global finance that he hopes will be held in November, after the US presidential election.

"The mania for bonuses at any price which makes people take risks at any price -- that's worth considering," said Sarkozy.

"How many currencies should there be? What should the relationship be between the currencies? All of these things have to be discussed.

"I really do think that all of these subjects have to be put on the table, we have to arrive at initial conclusions for a summit in November."

The European summit also saw the 27 EU leaders endorse plans unveiled earlier this week by the 15 nations in the single currency eurozone designed to safeguard banks which include more than a trillion euros in loan guarantees.

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