German Chancellor Angela Merkel on Friday called for the establishment of a UN Economic Council to oversee international coordination on economic affairs and avoid crisis.

Global efforts and better coordination are needed to address the current financial and economic crisis, Merkel told a session of the World Economic Forum annual meeting in Davos, Switzerland.

To avoid crises in the future, a new UN economic body similar to the UN Security Council should be established, she said.

"I don't know any other body (than the United Nations) that has this degree of international legitimacy," she added.

Merkel said the UN Economic Council should be based on a new charter for the global economic order.

She added that she would call a meeting next year of the International Monetary Fund, the World Bank, the International Labor Organization and the World Trade Organization to talk about the idea of the new global economic charter.

The five-day Davos forum, which opened in Swiss mountain resort Davos on Wednesday, is focusing on the current economic crisis and other global challenges including climate change, food and water security.