World financial system needs to be revised – Sarkozy

EU leaders, who are meeting in Brussels, say the current world banking system needs an overhaul. French President Nicolas Sarkozy says that it’s vital to hold talks on the revision of the world financial system by the end of the year, without waiting till

European leaders are calling for a global summit next month to rewrite the 1944 Bretton Woods Accord which defined Europe’s post-War reconstruction and set up the institutions which dominate the world economy today.

But building new foundations to such financial institutions as the International Monetary Fund or the World Bank is unlikely to go down well in the U.S., which has used them to promote capitalist economies, and usually in its own interest.

The current EU President, Nicolas Sarkozy of France, with the support of European Commission President Hose Manuel Barroso, is about to head for the US to defend European interests at a meeting with George W. Bush this weekend.

Sarkozy explained why it is important to hold a global summit soon and not wait till the next U.S. leader takes his place in the White House:

“The president of the United States is elected at the beginning of November, but actually takes office in January. And that means that we wait for a new president. In the best-case scenario we will have a meeting some time in spring, and that's much too late”.

He added that the summit should be held before the end of the year: “Europe wants it, Europe is asking for it, and Europe is going to get it.”

The European leaders also agreed to speed up work on energy security.

The EU members confirmed they are going to stick to the objectives and timetable of their plan to cut greenhouse gas emissions by 20 per cent by 2020.

Regarding its relationship with Russia, the union has decided to put off making a decision on the resumption of talks on a new EU-Russia partnership agreement.

Earlier, in a surprise move, Italian Prime Minister Silvio Berlusconi suggested that Russia should join the EU.