World leaders are placing increasing importance on regulations to save financial institutions and get the global economy back to normal.

British Prime Minister Gordon Brown proposed that Europe take the lead in making necessary changes to its own banking systems, and participate in setting global standards for financial regulations.

"Tough regulatory standards should be set across Europe and the world, agreed to and fully monitored, not just in one country but in every continent," Brown told the European Parliament in Strasbourg, France on Tuesday.

With nine days to go before the G20 leaders meet in London on the financial crisis, Brown said he was confident the summit would reaffirm commitment to "do whatever it takes to create growth and jobs."

He said every country should do more to pump enough money into its economy and called for enhanced international cooperation in fighting the current economic crisis.

"We know that worldwide fiscal and monetary stimulus to the economy can be twice as effective in every country if it is adopted by all countries," he said.

Brown also had a meeting with representatives of US, Japanese, German and South African banks and discussed with them measures to get banks to lend again, toxic assets and regulatory reform.

Meanwhile, French Prime Minister Francois Fillon said in Washington that Europe and the United States had agreed on a new financial regulation.

"We reached an agreement which is very specific on regulating hedge funds," Fillon said at a news conference. "It's not about regulating activities for what they are but for what they do."

Fillon also hailed US President Barack Obama's essay that the White House said was printed in 31 publications worldwide.

"Only coordinated international action can prevent the irresponsible risk-taking that caused this crisis, that is why I am committed to seizing this opportunity to advance comprehensive reforms of our regulatory and supervisory framework," Obama said in the essay.

Fillon said it was the duty of the G20 group to achieve concrete results in resolving the global economic crisis, adding the best way to do this was to agree to stricter oversight of international financial institutions.

In the United States, in a rare joint appearance before a House of Representatives committee, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke tried to convince lawmakers on Tuesday to give them unprecedented powers to regulate and even take over financial institutions.

"AIG highlights broad failures of our financial system," Geithner told the House Financial Services Committee, referring to the hefty bonuses received by executives of the US insurer American International Group.

Addressing a prime-time news conference on Tuesday, President Obama said he expects strong support from Americans and Congress for his push for unprecedented regulatory authority over financial institutions.

The president defended his call for broad new powers to regulate non-bank entities such as AIG, which has received US$170 billion from a government rescue package.

Obama said the absence of such authority was partly responsible for AIG's woes, which have aroused wide public anger and doubts on the effectiveness of the government's rescue plan.

(Xinhua News Agency March 25, 2009)