European leaders also backed Merkel's call for a "charter of sustainable economic activity" that would subject all financial market activities around the globe to regulation, including credit rating agencies.They admit their culpability in the current mess, and now demand absolute power to "fix" it:
"Europe will own up to its responsibility in the world," Merkel told reporters following the talks.There will be nowhere to hide from their arbitrary and representative-less regulation, taxation, and punishment:
Merkel's proposal envisions giving increased powers to the IMF, which the leaders agreed needed to receive double its current funding in order to help members respond "swiftly and flexibly" to a crisis.
British Prime Minister Gordon Brown called for a "global New Deal" to be adopted to help right the world economy, saying international financial institutions need some $500 billion to do the job.
Other key points agreed to Sunday included adopting a "sanctions mechanism" to penalize tax havens and urging banks to keep larger reserves of capital.The EU Lords desire control over America's markets as well:
"A new system of regulation without sanctions would not have any meaning," said Sarkozy.
He said European countries should jointly draw up a list of tax havens, as well as sanctions they might face for continuing reckless financial activity.
Merkel also warned the United States to avoid protectionism in its automobile market.The Obamanation did not appear antagonistic to the proposal:
"When I look at the restructuring plans of some American companies, there are a lot of state funds flowing into them," Merkel said, swiftly adding that "this is not an accusation."
She said the European Commission would be asked to examine whether the U.S. was violating global trade laws.
In Washington, the Obama administration did not comment specifically on the measures being advanced by Europe but said the United States was ready to work with other countries to improve financial market regulation.Hold onto your wallets, folks, and keep your powder dry.
"We look forward to continuing to work through the G-20 process with our colleagues in Europe and the world to put in place sound regulatory regimes so such a financial crisis does not occur again," said U.S. Treasury Department spokeswoman Heather Wong.