EU leaders agree on principles for financial system summit

EU leaders agreed a set of principles they will put to next week’s summit of the world’s richest and emerging economies on restructuring the global financial system.

They hope the 20 world leaders will agree a new Bretton Woods-style set of rules for financial institutions within the next three months.

This leaves the way open for the new Obama administration in the US to play the major role in trying to prevent another world crisis caused by unregulated banking practices.