World leaders want financial reforms

BEIJING (AFP) - European and Asian leaders promised major reforms to the global financial system as they wrapped up a two-day summit here Saturday focused on the economic meltdown.

Leaders from the 45 members of the Asia Europe Meeting (ASEM) pledged to work together in comprehensively changing the world’s financial architecture and urged the International Monetary Fund to play a larger role in the turmoil.

Chinese Premier Wen Jiaobao urged unity between the two regions as they tackled the worst financial crisis since the Great Depression of the 1930s, and called for more regulation of the financial system.

“Only through cooperation can we have strength, can we tide over the difficulties,” Wen told reporters after the end of the talks.

“We need to draw lessons from this crisis,” he said.

“We need to handle correctly the relationship between financial innovation and regulation. We need financial innovation to serve the economy better, however we need even more financial regulation to ensure financial safety.”

Wen said quickly stabilising financial markets was crucial, following another horror week around the world that saw share prices plummet.