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Merkel: market reform must be implemented

Merkel: market reform must be implemented

Governments must follow through on pledges to reform the global financial system, German Chancellor Angela Merkel said Thursday, insisting that signs the crisis is easing cannot mean a return to "business as usual."
Addressing parliament ahead of next week's Group of Eight summit in Italy, Merkel said G-20 summits in Washington last year and in London this April took "important first steps."
"What is important is that we now implement these measures _ and, as we are seeing, there are immediately defensive reflexes against pushing through further regulation at the moment when banks feel something of a recovery," she told lawmakers.
There must be "no slackening of efforts toward a (new) financial market constitution and no return to business as usual," Merkel told lawmakers.
At the London summit in April, G-20 leaders promised major efforts to clean up banks' tattered balance sheets and get credit flowing again, shut down global tax havens and tighten regulation over hedge funds and other financial high-flyers.
International regulators' future approach to banks will have to be coordinated "so that we get a sensible field on which fair competition can take place," Merkel said.
Next week's G-8 summit in L'Aquila, Italy, should discuss giving multilateral organizations such as the International Monetary Fund and the Financial Stability Board "extra significance" to determine whether different regions' approaches fit together, she added.
The G-8 comprises Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
Merkel said the world will have to consider how to achieve "sustainable growth" once the economic crisis is over.
She noted that while her government drew up stimulus packages worth some