European leaders outlined sweeping proposals to regulate financial markets and hedge funds at a meeting in Berlin on February 23.

"All financial markets, products and participants including hedge funds and other private pools of capital which may pose a systematic risk must be subjected to appropriate oversight or regulation," Angela Merkel said in a statement released on behalf of the summit members.

The leaders also called for new sanctions to punish “uncooperative” jurisdictions and tax havens and agreed to strengthen the IMF.

The heads of government and finance ministers of Germany, France, the UK, the Netherlands, Czech Republic and Luxembourg, as well as the president of the European Commission, Jose Manuel Barroso, and central bankers were present at the meeting.

• Chair’s summary from European leaders meeting in Berlin  
• G-30 report