Leaders' talks to focus on turmoil

Talks between the leaders of the United Kingdom, Germany, France and Italy in London today will focus on financial market turmoil and its impact on the world economy, an Italian government source was quoted as saying yesterday.

Exchange rate issues are not on the agenda of the meeting, but are at the forefront of the four nations' concerns, the source told Reuters.

He added the talks had become more important following last week's market turbulence and the US Federal Reserve's rate cut.

"The idea of this meeting was put forward some months ago.

"But last week's events have made it even more important," the source, who declined to be named, said yesterday at a press briefing.

"The aim is to analyze how the tensions on financial markets can impact the real economy and world growth prospects."

Possible reform

The London talks will also discuss the possible need for reform of multilateral institutions, including the International Monetary Fund, the source said.

"They will look at the role they have, whether their structures are suited to modern times and the need for reform of these organizations," he said.

The source said the talks will not be used to prepare a common European position ahead of next month's meeting of G7 finance ministers in Tokyo.

German government spokesman Ulrich Wilhelm told a regular news conference in Berlin that today's gathering would allow a thorough exchange of views about the economic situation.

But "the London meeting is not about making concrete decisions," said the government spokesman.

Agencies

(China Daily 01/29/2008 page16)