Finance ministers from Europe's top four economies called on Thursday for greater market transparency, full disclosure of losses and better coordination among supervisory bodies in response to the global credit crunch.
The call followed talks in Paris between ministers from Germany, France, Britain and Italy, where they also voiced the hope that growth in emerging market economies would help to offset the impact of a slowdown in the United States.
They also said Europe's economy was fundamentally sound.
"Looking ahead, we underline that fundamentals are good, in particular employment has improved," said a draft document that summarised their views.
"We are confident second round (inflation) effects will be avoided and our policies will be consistent with this necessity," the draft, seen by Reuters, said, alluding to the need to avoid anything that could make inflation worse.