2010.10.0606:58:00UTC+00Asian, European Leaders Vow Stricter Economic Governance

Asian and European leaders attending the 8th Asia-Europe Meeting on Tuesday pledged to step up their reforming of the financial system and make it more resilient from future economic shocks.

In a statement issued at the conclusion of the two-day summit in Brussels, the leaders said the global recovery continued on the back of the well coordinated stimulus packages, and said priority should be given to "restoring market confidence and preserving recovery momentum."

The leaders also welcomed the response of the European members to the sovereign debt crisis that broke out in the continent during summer.

"We encourage the pursuit of credible clearly communicated plans for fiscal consolidation, delivering fiscal sustainability while also protecting economic growth, duly differentiating the speed and timing of consolidation for national circumstances," the statement read.

Asian and European leaders also backed the implementation of the International Monetary Fund's quota reform, by the G20 summit in November this year, to adequately reflect the relative weight and responsibilities of the IMF members in the world economy.

"IMF quota shares must be shifted to dynamic emerging markets and developing countries by at least 5% from overrepresented to underepresented countries using the current quota formula as the basis to work from, while protecting the voting power of the poorest countries," the statement said.

Officially established in 1996, ASEM is an interregional forum held biannually with 43 countries from Europe and Asia participating along with the European Commission and the ASEAN Secretariat.

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