Interview: Gordon Brown backs world market reform

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Interview: Gordon Brown backs world market reform

Gordon Brown, UK chancellor of the exchequer, speaks to Nick Kochan about the birth of the euro, tax competition in Europe and rethinking the world's financial architecture.

Could you describe your new approach to international financial architecture?

The new international financial architecture addresses three great issues. The first is a crisis-prevention and a crisis-resolution mechanism that is far more effective than it has been in the past. Hence the proposals for a precautionary facility that are working their way through international forums as well as national governments. Hence also our desire that we consider private-sector involvement in crisis prevention and resolution and a stronger role for the international institutions.

The second area involves a far more effective system of global financial supervision. The Financial Stability Forum brings together national and international regulators in a bid to create a system of regulation for global financial markets, not dissimilar to the system which national governments have pursued for 50 years for their national markets.

The third area is creating the transparency that is necessary through codes of conduct. I think that is the essential building block of the new international financial architecture, whereby all countries agree to pursue policies that are transparent, that are open. This will ensure that information about monetary policy is not withheld from the markets, from other governments, and the other authorities.

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