Sarkozy outlines 'refoundation' of capitalism

More unified economic governance of the euro area, strict rules aimed at overcoming the current 'failures' of the US-style capitalist model, increased protection against foreign takeovers and tougher rules on tax havens are all part of the French president and current holder of the EU presidency's plans, he told members of the European Parliament yesterday (21 October).

The extraordinary Eurogroup meeting, held at head of state and government level in Paris on Sunday 12 October to tackle the vertical slide of European stock exchanges, should become the norm, according to Sarkozy. Indeed, he made clear that finance ministers, who are currently in charge of the Eurogroup's monthly reunions, cannot do enough to cope with the most delicate issues and to send the right messages. "The euro zone cannot continue without a well-defined economic government," he told MEPs during a plenary session in Strasbourg.

A supposedly stronger Eurogroup would represent the EU institutions' new firm approach to pushing for reform of the world economy and to introducing a new 'Bretton Woods', as called for by several European leaders in recent weeks. The enlarged G8 summit, demanded by Sarkozy for November and backed by outgoing US president George Bush, is seen as the forum to launch the review process (EurActiv 20/10/08).