Sarkozy and Brown call for global market changes

British Prime Minister Gordon Brown and French President Nicolas Sarkozy have issued a joint call for urgent global reform of financial markets.

Writing in the Wall Street Journal, they say a one-off tax on bank bonuses should be "considered a priority".

The two leaders say it is "simply not acceptable" for taxpayers to cover the cost of bank failures but not benefit from their successes.

The article comes as EU leaders prepare to meet for a summit in Brussels.

It also follows the announcement in a pre-Budget report by UK finance minister Alistair Darling of a one-off supertax on banker bonuses.

'Proper regulation'

The BBC's Jonny Dymond, in the Belgian capital, says the joint article at times reads like a call to arms.

In it, Mr Sarkozy and Mr Brown say the financial crisis has made them "recognise that we are now in an economy which is no longer national but global, so financial standards must also be global".

"We must ensure that through proper regulation, the financial sector operates on a level playing field globally."

They say there is an "urgent need for a new compact between global banks and the society they serve".

"A compact that ensures the benefits of good economic times flow not just to bankers but to the people they serve; that makes sure that the financial sector fosters economic growth."

Various proposals to reform the sector "deserve examination", they said, but a one-off tax on high bonuses paid to bankers "should be considered a priority".

"People rightly want a post-crisis banking system which puts their needs first. To achieve that, nothing less than a global change is required," the leaders wrote.

France and the UK have been at odds recently over European banking.

Mr Sarkozy appeared to boast that the appointment of Frenchman Michel Barnier to oversee European banking reform was a defeat for Britain.

Mr Sarkozy told Le Monde newspaper the British were "the big losers" in the share-out of EU jobs.

Mr Sarkozy and Mr Brown cancelled a meeting last week but are set to meet on Thursday on the sidelines of the EU summit.

On Wednesday, Mr Darling announced plans for a one-off supertax of 50% on banker bonuses, to be applied to payments over £25,000.

The new tax - which would be paid by banks and not individuals - is designed to discourage institutions from paying large bonuses to employees in the wake of the major taxpayer support they have received in the financial crisis.