The leaders of Europe's three biggest economies - Germany, France and Britain - called Friday for new rules and greater transparency on the financial markets following the recent turmoil sparked by the US sub-prime mortgage crisis, DPA reported. At a meeting in Portugal, Chancellor Angela Merkel, President Nicolas Sarkozy and Prime Minister Gordon Brown said EU ministers would be asked to discuss the appropriate measures at a Council meeting scheduled for the spring of 2008. "The recent global financial turmoil has highlighted that confidence in and between financial institutions is vital for the proper functioning of financial markets," a joint statement signed by the three leaders read. "It turned out that liquidity management, the treatment of off-balance sheet vehicles and the identification of risks to stability were in some cases inadequate and insufficiently transparent. "As a key global financial marketplace, the European Union should have a strong role in developing the global response to these events," the statement added. Merkel, Sarkozy and Brown also called for greater cooperation between national regulatory authorities and identified a number of key areas where action is necessary. These include the appropriate disclosure of information on securitised debt, risk management, the behaviour of banks and the role of rating agencies.
