Canada shy of big overhaul of capitalism

Wed Nov 5, 2008 2:32pm EST
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By Randall Palmer

OTTAWA (Reuters) - The Canadian government staked out an approach to the international financial crisis on Wednesday that is less sweeping than the complete overhaul of capitalism advocated by several European leaders.

A senior Canadian finance official, speaking on condition of anonymity, stressed the need for regulation to start at home, balanced by international coordination, review and peer pressure.

The official, briefing reporters ahead of talks being held by G20 finance ministers in Brazil on Saturday, displayed the same sort of circumspection that U.S. officials have shown on the question of a big revamp of the financial system, and spoke of the need to be pragmatic.

Canada continues to believe that open markets and competition have unleased tremendous growth around the world, so that while more regulation is needed to prevent another crisis, free enterprise should not be stifled, the official said.

Among other points that the official said Finance Minister Jim Flaherty will register with his G20 colleagues this week are:

- all pools of capital should come under the regulatory umbrella

- regulation should look at the system as a whole and not institution by institution

- executive compensation should be aligned with long-term stability objectives.   Continued...