Home > Global Finance, History, Indian Economy, Politics > What do the Europeans want … in the new global financial architecture

What do the Europeans want … in the new global financial architecture

Bloomberg.com: Worldwide

Asian and European leaders called for an overhaul of World War II-era banking rules, lending support to French President Nicolas Sarkozy as he pushes the U.S. to embrace greater supervision of global financial markets.

The leaders “pledged to undertake effective and comprehensive reform of the international monetary and financial systems,” according to a statement in Beijing yesterday. Chinese Premier Wen Jiabao told reporters after the gathering of more than 40 heads of state and government that “we need even more financial regulation to ensure financial safety.”

U.S. and European leaders have sparred over the causes of the credit crunch and how to cure it. Sarkozy has called for stricter government oversight of banks and hedge funds. President George W. Bush, who will host the Group of 20 industrialized and developing nations on Nov. 15, emphasized the role of free markets in a speech yesterday.

China cosies with Europe

China is making common cause with EU over the dollar crisis. While Chinese disappointment is understandable, their actions are beyond comprehension. Just why will Europeans be bothered about Chinese welfare? Just look at their history!!

For that matter why in the world would anyone be interested in Chinese welfare – except the Chinese, of course. The Chinese Government is looking at all options – except Chinese welfare, unfortunately.

And what do Europeans want – some seats at the global regulatory table, to force US moneybags to seek approvals, which will come at a cost … or is that the approvals will come at a price …

Which will solve no one’s problems … back to square one …

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