Merkel sets financial tax, enhanced regulation as G20 priorities

German Chancellor Angela Merkel urged those who criticize eurozone's move on debt crisis to think more about what they can do for the future of global economy, laying a worldwide financial transaction tax and conducting stricter regulations. "It should not be the case that those outside the euro zone, who are asking Europe time and again to take action on the debt crisis, are at the same time working together to reject a financial transaction tax," Merkel said, when addressing a meeting of German labor union IG Metall in the southern city of Karlsruhe. These comments seemed aimed at the United States and Britain, two traditional allies but resisting Germany's idea on applying a global tax for financial transactions, which could prepare sufficient firepower and resources for the next possible 2008-like financial crisis. Both U.S. President Barack Obama and British Prime Minister David Cameron have expressed their dissatisfaction and anxiety in recent weeks for eurozone's handling of the debt crisis, especially actions of the two pillars of eurozone -- Berlin and Paris. Obama said the eurozone debt troubles are "scaring the world" and became the the largest obstacle to a recovery in his country. For the upcoming Group of 20 (G20) summit in Cannes, France in November, Merkel called on world leaders to discuss two key questions. The first is how to improve "less regulated financial markets", while the second is how to solve the problem of "too-big-to-fail" banks and prevent a troubled bank from damaging the whole system. Germany will continue to campaign for the tax policy in the G20 meeting, and promote such a move within Europe at first, although a worldwide tax would be better, Merkel said. The chancellor also played down expectations on the EU summit on Oct. 23, saying that there would be no "one big-bang plan of action that will solve everything." Merkel said that the debt crisis is rooted deeply in a series of failure of some eurozone countries' economic management for "years, even decades" as they borrowed too much and did not improve their economic competitiveness. She stressed that every step should be taken carefully facing the crisis, and measures can only be conducted when its benefits go beyond its defects. Although Merkel said there is no quick fix for the crisis, markets and analysts are still waiting for "a global, sustainable and rapid solution" to the crisis promised by Merkel and French President Nicolas Sarkozy, after the two leaders held a closely-watched meeting in Berlin last weekend. They said they will release the "total package" by the end of October.