Medvedev backs Merkel's charter for new regulation

THE LEADERS of Russia and Germany have called for concrete results and an “ambitious” agreement at the London G20 summit.

THE LEADERS of Russia and Germany have called for concrete results and an “ambitious” agreement at the London G20 summit.

After talks in Berlin yesterday, Russian president Dmitry Medvedev threw his weight behind Berlin plans to overcome the financial crisis with new regulation rather than extra spending.

“The world is in a dramatic crisis. We want to be ambitious, not just deliver a few slogans and go home with nothing changed,” said Dr Merkel in Berlin.

“We not only have to agree new finance market architecture but we have to look for tools to make sure that the EU, the US, Russia and China implement this. It will only work when all sides do their homework.”

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Mr Medvedev praised as a “substantial document” Berlin’s draft charter for sustainable economic development that calls for measures to stabilise financial markets, reduce economic imbalances and state indebtedness and a new global governance structure.

“We have to lay the foundation for the future so this crisis cannot repeat itself,” said Mr Medvedev. “That’s why we welcome this charter. We have to work today on a new construction for the future. That is our job.”

However, the Russian president appeared less interested in a final declaration in London, describing the G20 as the kick-off rather than “a final prescription”.

“We can no longer shirk discussion about future financial market structures,” he said, warning that patching up 60-year-old financial market structures was an insufficient response.

“These structures haven’t proven themselves in a crisis,” he said. “We have to establish a modern currency system because the current system is far from ideal.”

Dr Merkel did not comment on Moscow’s suggestion for a supra-national currency, which has already been given a cool reception in London and other capitals.

Ahead of Nato’s 60th anniversary summit on Friday, the two leaders called for new energy to be invested in EU-Russian relations.

Moscow is unhappy with the current Nato-co-ordinated situation and wants new legally binding arrangements with the EU.

Dr Merkel has called for fresh Nato re-engagement with Russia, but has called for a goodwill gesture to Moscow.

Polish defence minister Radoslaw Sikorski made a trust-building suggestion. “We need Russia for the resolution of European and global problems,” he said. “That is why I think it would be good for Russia to join Nato.”