MercoPress. South Atlantic News Agency

“Regulation of globalization is the central issue”

French president Sarkozy warned of political and social unrest.

French President Nicolas Sarkozy has warned of political and social unrest unless there is greater regulation of the globalized economy. He argued that the current system of “speculation and dumping” cannot continue. “We have to overhaul everything,” he said. He called for a larger role for social institutions in financial regulation.

The president was speaking in Geneva at the invitation of the International Labour Organization (ILO).

“Regulation of globalisation is the central issue,” he argued.

“Either we have reason or we will have revolt. Either we have justice or we will have violence. Either we have reasonable protection or we will have protectionism.

”It is irresponsible to believe that the financial markets can continue to impose their obsession with short-term profit on the entire global economy, and on society,“ he added.

The French president's comments were backed by his Brazilian counterpart Lula da Silva, who called for a clampdown on financial speculation and tax havens.

The ILO itself warned that the current economic downturn will affect the global employment market for years to come with the loss of an estimated 50 million jobs.

”Even if the signs of recovery are confirmed, and even if there is a real recovery by the end of the year or early next year, we will need still several years before the jobs market goes back to the pre-crisis situation,” said Raymond Torres, director of the Institute for Labour Studies at the organisation.

The process normally takes four to five years, he said.