Merkel calls for better financial market regulation

German Chancellor Angela Merkel called on Saturday for better financial market regulation, three days before she was due to host chiefs of the World Bank, IMF and other global economic organisations in Berlin. "In my opinion, we're not yet there where we should be. We had planned to regulate every financial centre, every financial actor, every financial product," Merkel said in her weekly video podcast. "Significant progress has been made. But the rules have not yet been implemented everywhere," she added. Her statements came after the European Parliament approved new rules Friday to better protect investors across the whole financial services industry, proposals which now go forward to the European Commission and EU leaders. Critics blame rampant and irresponsible speculation at banks and investment houses for the global financial crisis of 2008-2009, arguing that staff were paid to make money first for their firms ahead of clients. After tough new regulations enjoyed some early success, financial firms have recently fought back, saying over-regulation will kill their business and the much-needed services they offer to ensure economic growth. Merkel said the non-bank or "shadow" financial sector was in particular need of regulatory progress and hoped such measures would be agreed upon at the next meeting of the Group of 20 leading and developing economic powers. "Structural reforms, even if they are painful, are starting to have an effect in certain countries," she said, citing progress in Ireland, Spain, Portugal and Greece. Merkel is expected to highlight the EU's progress when she discusses the global economy with the heads of the World Bank, International Monetary Fund, World Trade Organisation and other top economic institutions on Tuesday.