European leaders meeting in Berlin on Sunday have backed oversight of all financial markets and products, including hedge funds, and urged that sanctions be drawn up to punish tax havens, according to a final statement seen by Reuters.
The chair's summary from a summit hosted by Chancellor Angela Merkel describes the situation in financial markets as fraught and says structural reforms and a focus on public spending are needed to emerge stronger from the global crisis.
We have today underscored once again our conviction that all financial markets, products and participants must be subject to appropriate oversight or regulation, without exception and regardless of their country of domicile, the statement says.
This is especially true for those private pools of capital, including hedge funds, that may present a systemic risk.
(Reporting by Gernot Heller; Writing by Noah Barkin)