European summit to prepare G20 finance reforms

(Reuters) - European leaders met in Berlin on Sunday to try and forge a common position on how to proceed with reform of the global financial system ahead of a summit of the Group of 20 industrial powers in April.

Following are highlights from the closing news conference.

GERMAN CHANCELLOR ANGELA MERKEL

"We're dealing with an extraordinary international crisis the likes of which we have not seen for decades, both as regards financial markets and the global economy. We believe that such an international crisis can only be solved jointly."

"We have assembled...with the goal of restoring confidence in the markets, which has not yet happened. Berlin is a staging post between Washington and the Apr. 2 summit in London where we will take forward the European position. Everyone feels quite clearly the need to ensure that London is a success.

"We are making a commitment that all financial markets, products, and participants -- including hedge funds and rating agencies -- are of course subject to supervision and regulation. The necessary details on this must be worked out and be a part of the Action plan. We will draw up a list clearly showing which the uncooperative jurisdictions are."

"If I compare it with the Washington action plan, we've made our position much clearer on the pursuit of tax havens, and also as far as the institutions, products and the specific locations go."

"One of the mistakes of the past was that banks did not build up a buffer of their own capital and have not been able to react to the crisis."

On auto industry aid.