Reuters reported that Germany and Britain have called for a global economic watchdog with strengthened powers to prevent rather than react to financial crises that can spiral into worldwide recession.

Ms Angela Merkel German Chancellor, while addressing at World Economic Forum, said that cooperation amongst international financial institutions has failed to ward off the worst financial crisis in decades and a new charter should be forged. She added that "This may even lead to a UN Economic Council, just as the Security Council was created after the Second World War."

Mr Gordon Brown Prime Minister of Britain, who is spearheading global financial reform as chairman of the Group of 20 leading developed and emerging economies, said that bold action was needed to get banks lending again and repair the financial damage. He added that "We are prepared to consider radical options. The old ways have not worked. We have got to rebuild the financial system."

Mr Brown said that "What we are seeing at the moment is thousands of people in every country of the world losing their jobs, thousands in fear of losing their homes, thousands of businesses going under."

(Sourced from Reuters)