Rodríguez Zapatero urged a reform of the International Monetary Fund during the summit in China

Friday

During his intervention in the ASEM Summit, the Head of the Government stressed the need to behave in a responsible way in order to face the economic situation and he defended a reform of the International Monetary Fund in order to provide this fund with a new mandate and with new market supervision mechanisms, using as an example the models that have been implemented in different countries. Besides, he proposed that this organism should grant loans to emerging economies with problems.

The President also instilled china and the rest of the emerging countries to contribute to the stability of the system by correcting their unbalance, namely, their high investment rates and their low saving rates.

Rodríguez Zapatero also warned against protectionism, for he is convinced that free competence can contribute to the recovery of financial markets.

The President intends to put forward these three proposals at the meeting of twenty seven Heads of State and Government of the EU member countries, which was summoned by the President of France, Nicolas Sarkozy, for next 7 November.

Bilateral meetings

During the Asia-Europe Summit, the President of the Government held a brief bilateral meeting with the Prime Minister of Japan, Taro Aso, and they analysed the evolution of the financial crisis and the initiatives adopted in order to face it.

Both agreed that it is necessary to enhance confidence in the markets and they defended the creation of shared measures in order to face the crisis.

The President is also going to hold a meeting with the President of China, Hu Jin Tao, and with the President of Southern Korea, Lee Myung-bak.

Washington Summit

Besides, the Spanish diplomacy is still working so that Spain may attend the international financial Summit in Washington, next 15 November.

In this regard, the Vice President of the Government, María Teresa Fernández de la Vega, said that she is convinced that our country will attend that forum.

During the press conference after the Council of Ministers, she pointed out that "leaving speeches aside, it is the diplomatic efforts we have been carrying out so far that matters, and these efforts are reasonable and match the capacity and the prestige of our diplomats".

Fernández de la Vega said that "over the last few weeks there have been multiple international contacts".

He said that European and Asian leaders are holding a meeting in Beijing, and next week Latin American leaders will meet in El Salvador, then, on November there will be a meeting of European leaders and then a meeting of world leaders in Washington.

"I believe that Spain will attend the different meetings", she said.

Rodríguez Zapatero demanded more transparency and control during the press conference

During the press conference, the President of the Government, José Luis Rodríguez Zapatero, made an assessment of the development of the Asia-Europe Summit (ASEM) and he demanded a reform in the international financial system. "Spain -the President said- defends this position in Europe, here and now, in the Europe-Asia Summit, and we will also defend it next week in Latin America, in the Summit in El Salvador.

To start with, he condemned ETA's violent actions against two railway stations this week and then he corroborated the Government's compromise and the guaranteed that "all terrorist actions are going to have the same finale, since criminals will be arrested and taken to court".

Rodríguez Zapatero pointed out that "we are witnessing an unprecedented crisis of the financial system", a crisis that "has generated general mistrust in the markets and objective difficulties for economic financing, caused essentially by the lack of supervision, regulation and adequate control of certain financial instruments, instruments without guarantees that have hindered and contaminated the whole international financial system".

He defended an urgent, multilateral reaction

"It is necessary to react urgently, it is necessary to implement a firm change, a change that can only be implemented through a multilateral action, through a multilateral action inspired on a series of principles that may bring the financial system back to the objectives and to the values it should have never abandoned, objectives and values aimed at contributing to the good operation of economy, with transparency, from a democratic vision of the financial system, from a perspective that citizens will be able to access, understand and control through their Governments".

"This multilateral reaction should be provided, sooner or later, with a reform mandate in order to bring about the change of the system that has agglutinated the reactions of the international community so far. That is to say, a new International Monetary Fund, with a new mandate and new contents. A mandate focused on promoting and spreading a general regulation concerning the supervision of the financial system", so as to guarantee the activity of the agencies that ensure the quality of financial products and strengthen the role the International Fund should play as a loan granter.

Rodríguez Zapatero said that he is confident in the work of the European institutions in favour of Spain's participation in the Washigton Summit. "Whatever its format may be, Spain should be there".

As to the economic situation of Spain, the President of the Government asked businessmen to intensify their willingness to reach an agreement with the unions.

Related news

• The President defended the presence of Spain in the Summit for the reform of the international financial system (21/10/2008)
• The Heads of State and Government of 45 different countries will take part in the great European-Asian meeting that will be held next 24 and 25 in Beijing (23/11/2008)

Related videos

• The President at the Press Conference after the 7th Summit Asia-Europe (ASEM) 39:28
• De la Vega: "Spain will attend the different meetings" 0:52

Press conference of the President of the Government