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Brown hosts EU economic meeting EU leaders call for transparency
(about 3 hours later)
Prime Minister Gordon Brown will discuss the risks posed by recent financial turmoil with his French, German and Italian counterparts. The leaders of Europe's biggest economies have called on financial institutions to improve transparency in all their activities.
The leaders of Europe's four biggest economies are meeting at Downing Street for talks on how their countries can respond to a global economic slowdown. UK Prime Minister Gordon Brown met his French, German and Italian counterparts at Downing Street to discuss the recent market turmoil.
In a joint statement already leaked to the media, they are expected to pledge a commitment to economic stability. Mr Brown said credit rating agencies needed to increase investors' understanding of complex products.
A news conference is scheduled to take place at 1930 GMT. The leaders also called on the IMF and other bodies to monitor risks better.
Rising risks "We need a better early warning system for the global economy," Mr Brown told reporters.
Mr Brown is meeting with German Chancellor Angela Merkel, French President Nicolas Sarkozy and Italian Prime Minister Romano Prodi. "We want the prompt and full disclosure of the write-offs that are now to take place as soon as possible; I think these are the immediate things people want to be done," Mr Brown said.
European Commission President Jose Manuel Barroso will also attend. Banks have been reporting massive losses related to investments in the ailing US housing market.
"Recent financial turbulence has increased the risks for 2008," they said in a draft statement prepared to be released after the meeting, but obtained early by Reuters, the news agency. Rapid action
"We remain committed to co-operating closely to maintain economic stability and deepening economic reform." Mr Brown met German Chancellor Angela Merkel, French President Nicolas Sarkozy and Italian Prime Minister Romano Prodi.
"We want the kind of capitalism that promotes entrepreneurship not speculation," said Mr Sarkozy afterwards.
European Commission President Jose Manuel Barroso also attended the discussion.
The leaders said in a statement that if financial institutions did not rapidly address their concerns, they were ready to introduce rules and regulations as an alternative to "market-led solutions".
"We need to have more transparency on the valuation of these new, very complex financial instruments," said Ms Merkel.
Cooperation keyCooperation key
Earlier on Tuesday, Chancellor Alistair Darling told BBC News that cooperation was key to preventing an economic slowdown intensifying.Earlier on Tuesday, Chancellor Alistair Darling told BBC News that cooperation was key to preventing an economic slowdown intensifying.
"With the combination of the right regulatory response and the right economic response, I am confident that we will get through these difficulties and will continue to see growth.""With the combination of the right regulatory response and the right economic response, I am confident that we will get through these difficulties and will continue to see growth."
Consumer confidence is deteriorating across Europe as stock markets plummet and the Societe Generale rogue trader scandal makes headlines.Consumer confidence is deteriorating across Europe as stock markets plummet and the Societe Generale rogue trader scandal makes headlines.
And the US economy, a major destination for European exports, could be headed for a recession, some economists say.And the US economy, a major destination for European exports, could be headed for a recession, some economists say.
The talks come before finance chiefs from G8 nations meet in Japan in February.The talks come before finance chiefs from G8 nations meet in Japan in February.