4. Better regulation of financial markets

As a core part of its joint front, the EU will push for a deal to ensure appropriate regulations and oversight of all financial markets, products and participants that may present a systemic risk, without exception and regardless of their country of domicile.

This is especially true for private pools of capital, including hedge funds, private equity and alternative investment vehicles, EU leaders said.

The EU wants rating agencies be subject to proper regulations and supervision in an internationally consistent manner.

The transparency and resilience of credit derivatives markets should be enhanced.

Tax evasion, financial crime, money laundering and terrorist financing as well as any threat to financial stability and market integrity should be tackled. EU leaders in particular called for a blacklist of non-cooperative tax heavens and stood ready to develop a toolbox of sanctions.

The EU will also push at the London summit the adoption of sound common principles on corporate governance and remuneration practices.

International supervisory cooperation should be improved. The EU will in particular call for the rapid establishment of colleges of supervisors for all major cross-border financial institutions before the end of 2009.

Regulations relating to banks' capital and prudential rules and accounting standards should be improved.

5. Support to developing countries

EU leaders agreed to promote global development as part of the solution to the global crisis and a basis for peace and stability.

They said the EU will honor commitments to increase development assistance, meet aid-for-trade pledges and give duty-free and quota free-access to the least developed countries.

The EU will work to enable multilateral development banks to help counter the effects of the crisis in developing countries.

(Xinhua News Agency March 21, 2009)