Statement was delivered on March 26, 2009 at the UN Headquarters in New York during the afternoon session.

Madam Chair,

Thank you for the floor and let me make several remarks on behalf of the European Union on the Reform of International Institutions.

We need to improve the functioning of the economic and financial system. The EU has made a number of proposals and has adopted a set of decisive actions. These actions are described in details in the recent European Council conclusions.

The reform of the IMF as well as the World Bank needs to be accelerated. The IMF needs to have the financial means necessary to assist countries particularly affected by the current crisis. The European Union in this respect welcomes the agreement at the G20 Ministerial meeting on 14 March on the urgent need to increase IMF resources very substantially, and that this could include further bilateral support, a significantly expanded and increased New Arrangements to Borrow, and an accelerated quota review. The European Council on 19 March agreed that: "For specific crisis support, EU Member States are ready to provide on a voluntary basis a fast temporary support of IMF lending capacity in the form of a loan to a total amount of 75 bn EUR."

The EU also strongly welcomes the agreement of the G20 Ministerial meeting just recently to conclude the next quota review in 2011 rather than 2013, provided that all IMF members first ratify the 2008 quota and voice package. Also the agreement that top appointments to the IMF and the World Bank should be based on open and transparent procedures notwithstanding the geographical background of candidates is a good step forward. Governance reform should also address internal governance to ensure the effectiveness and even-handedness of the IMF's surveillance and crisis management.

We hope that other global parties will now match our pledge and ensure fair global burden-sharing.  EU Member States have also agreed on doubling its "Community Financial Assistance Facility" to 50 bn EUR, which will contribute to assist our Eastern European Member States.

 

Thank you for your attention.