German Chancellor Angela Merkel and the heads of leading international bodies called on Thursday for a new global economic charter to prevent future crises and said all countries had a duty to resist protectionism, according to Reuters. Merkel met the heads of the International Monetary Fund, World Trade Organisation, World Bank, OECD and the International Labour Organisation to discuss cooperation in fighting the global economic crisis. After their meeting, they issued a joint statement urging decisive action from G20 countries to reform global financial rules, a successful conclusion of the Doha round of world trade talks and efforts to curb climate change and poverty. "Only the effective development of the social market economy can continue to guarantee economic growth," the statement read. "To ensure this development we need an overarching framework, supported by states and international organizations, that prevents excesses in the market and works to counter future crises." The signatories said the new "charter for sustainable economic governance" could be based on existing OECD instruments on corporate governance, fighting corruption and fiscal cooperation, as well as ILO guidelines on social protection and working conditions. Governments across the globe are intervening in their economies like never before, taking stakes in stricken banks and introducing new rules to harness excesses they say have sparked the worst economic downturn since the Great Depression. U.S. President Barack Obama on Wednesday announced a $500,000 annual pay cap for executives at companies receiving taxpayer funds. Germany has taken similar steps, while top bankers in France have agreed to forego bonuses under pressure from President Nicolas Sarkozy. Merkel, who has warned of creeping protectionism in the United States, welcomed at a joint news conference a move by the U.S. Senate to soften a "Buy American" provision in a $900 billion U.S. stimulus package, calling it a "good signal". "Despite today's troubled state of the global economy, all countries have a duty to resist protectionist tendencies, work towards tangible further opening of world trade and ensure that their stimulus packages do not disrupt trade," the joint statement read. World Trade Organisation head Pascal Lamy, speaking later after meeting German Economy Minister Michael Glos, called the global trade situation "pretty terrible" and conceded that "a bit" of protectionist momentum had emerged. IMF chief Dominique Strauss-Kahn voiced optimism that the global economy could recover in 2010, but said credit conditions needed to become looser to ensure an upturn next year. On the margins of the meeting, World Bank President Robert Zoellick and German Development Minister Heidemarie Wieczorek-Zeul launched a $500 million facility that will support microfinance institutions facing difficulties refinancing as a result of the global crisis.
