MercoPress. South Atlantic News Agency

Sarkozy's proposal to regulate “crazy” system in G8 agenda

Sarkozy urges reform of capitalist system

The Group of 8 of industrialized countries will consider a proposal by French President Nicolas Sarkozy for a leaders' summit to overhaul the world's financial system in the wake of a crisis that has rocked markets.

Sarkozy made the proposal at the United Nations General Assembly in New York on Tuesday, saying that leaders of major nations should meet in November to work on regulating the "crazy" financial system. "Let us rebuild capitalism in which credit agencies are controlled and punished when necessary, where transparency ...... replaces opaqueness", said Sarkozy in his UN speech. "A regulated capitalism where all the mysteries of financial activities are not left solely to market operators", he added. The French president also called for the expansion of the G 8 (US, UK, France, Germany, Canada, Italy, Japan and Russia) to include leading emerging countries such as China, India, South Africa, Mexico and Brazil to help with the current problem and learn lessons to avoid a repeat. From Japan which currently holds the G 8 chair the new Prime Minister Taro Aso said the "most important thing to do right now is to restore the markets' confidence in the financial system" "As far as President Sarkozy's proposal is concerned, we will consider it from this point of view and coordinate with the countries concerned". "I would not rule out what Sarkozy is saying from the beginning, but we need to watch the situation carefully" newly appointed Finance minister Shoichi Nakagawa told reporters. "In any case, we need to tackle these issues in a speedy, flexible and effective manner". The French president also attacked the overpaid bosses of the financial system. "I am told 'We don't know who is responsible.' Oh yeah? Well, let me tell you that when things were going well, we knew who got bonuses".