Brown, Merkel, Sarkozy to Meet on Markets

British Prime Minister Gordon Brown will host German Chancellor Angela Merkel and French President Nicolas Sarkozy for a meeting in the first half of January on financial market stability.

"I have invited Chancellor Merkel and President Sarkozy to London so that we can discuss the proposals in the paper we agreed and issued a few weeks ago," Brown told parliament on Monday.

Reporting back on last week's European Union leaders' summit, Brown said the heads of government had concluded that close monitoring of financial markets and the economy was crucial, as uncertainties remained.

The summit underlined the need to improve transparency for investors, markets and regulators; improve valuation standards; improve the prudential framework, risk management and supervision in the financial sector; as well as review the functioning of markets, including the role of credit rating agencies, he said.

"The European Council will discuss these issues at its Spring 2008 meeting on the basis of a progress report by the Finance Ministers Council and by consideration of the Financial Stability Forum's work to date," Brown said.

"As agreed by Chancellor Merkel, President Sarkozy and myself in October, the progress report should examine whether regulatory or other action is necessary."