EU vows to shield economy from financial fallout

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(Agencies)
Updated: 2008-10-16 22:59

BRUSSELS - European Union leaders called on Thursday for action to preserve growth and jobs and maintain industrial competitiveness as the worst financial crisis for 80 years raised fears of a deep recession.

France's President Nicolas Sarkozy addresses a news conference at the end of a two-day European Union summit in Brussels October 16, 2008. [Agencies]

The 27 leaders said a forthcoming international summit to reform the global financial system should take early decisions on transparency, global standards of regulation, cross-border supervision and an early warning system to restore confidence.

Despite the crisis the EU agreed to stick to a December deadline for adopting ambitious legislation to fight climate change. But in a concession to Poland, worried at the cost of greenhouse gas curbs to its coal-based economy, the final decision will be taken by unanimity and not majority voting.

French President Nicolas Sarkozy said he and European Commission President Jose Manuel Barroso would travel to meet US President George W. Bush on Saturday to help prepare for a summit that would decide on a "refoundation of capitalism".

Having won the backing of other major economies including the United States for the meeting, EU leaders turned their attention to the likely impact of the credit crunch on their own real economies.

A Reuters poll of economists on Thursday found 34 out of 41 surveyed believe the euro zone is already in recession and most say it will last between six months and a year.

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