21 May 2010

German leader calls for tougher finance regulation

2:53 pm on 21 May 2010

German Chancellor Angela Merkel has stepped up calls for tougher regulation of banks and financial markets, saying governments must act together and show a "signal of strength".

Mrs Merkel's comments come a day after she warned the euro was in danger without strong action, the BBC reports.

The Chancellor has been trying to secure parliamentary support for Germany's contribution to a European bail-out fund - a measure that has proved unpopular with taxpayers unwilling to fund the massive black holes in the finances of countries such as Greece.

Angela Merkel also wants stricter regulation of international financial markets, and for a new European credit rating agency to be established.

So far the markets are not buying the idea of eurozone unity.

This week Germany angered other European Union nations by acting banning a type of short-selling - speculative bets on some assets - without co-ordinating its decision with its Euopean partners.

Some analysts say that could hinder support for any future joint action.