World Leaders Urge Global Financial Overhaul

World Leaders Urge Global Financial Overhaul. October. 27, 2008 09:10. orionha@donga.com swpark@donga.com.

Asian and European leaders over the weekend urged a major overhaul of the international currency and financial systems at the Asia-Europe Meeting in Beijing.

In a joint statement, they also pledged to cooperate on the denuclearization of the Korean Peninsula and act on climate change and energy security.

“The International Monetary Fund and other international financial institutions should assume their mandated role in the global financial system, to help stabilize the international financial situation,” the statement said.

“Leaders agreed that IMF should play a critical role in assisting countries seriously affected by the crisis, upon their request,” it added.

Leaders also expressed support for the G20 summit slated for Nov. 15 in Washington on overcoming the global financial crisis.

Meanwhile, President Lee Myung-bak and French President Nicolas Sarkozy, who held their first summit in Beijing Saturday, agreed to make a united effort to finalize the Korea-European Union free trade agreement by year’s end and overcome the global financial turmoil.

Both also agreed to work closely together to ensure that specific solutions to the global credit crunch can be drawn up at the G20 summit.

On the free trade deal, President Lee said, “We need to adopt a pragmatic approach and make efforts to promptly conclude the deal. If possible, I hope to reach an agreement before President Sarkozy’s term as EU chairman ends (at the end of the year).”

In response, Sarkozy said he also wishes for an early conclusion to the deal, saying Korea and the EU share the same values.