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EU meets Friday ahead of global financial summit

 EU meets Friday ahead of global financial summit
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EU heads of state meet in Brussels on Friday to try to hammer out a common position on the global financial crisis.

Friday’s meeting comes ahead of a summit for the world’s largest economies, the G-20, in Washington in a week’s time.

That will be devoted to an overhaul of the world’s financial institutions.

The EU is pushing for reform of the International Monetary Fund to give developing countries more of a role in guaranteeing the world’s financial system.

Analyst Daniel Gros, from the Centre for European Policy Studies, said: “The only thing that could be done would be to recast the governance of the IMF, the World Bank and the other international financial institutions. But here the solution is very simple, everybody knows it. We need to have a Euro area seat at the IMF with a much smaller share and a much larger share for China.”

France has proposed specific measures for the EU ahead of the G20 summit.

These include, among others, firmer oversight of rating agencies and codes of conduct to tackle excessive risk taking.

But several states have refused to sign off on the plan, so it seems reform will take longer than hoped.