Sarkozy discussing global finance with Obama

[January 10, 2011]  WASHINGTON (AP) -- French President Nicolas Sarkozy plans on working to make some changes in the global financial system, and at a White House meeting on Monday he plans to press President Barack Obama to join him.

France currently holds the presidency of the Group of Eight industrialized economies and the larger Group of 20 leading rich and developing nations; Sarkozy wants to lay out his priorities for the French tenure.

He favors making the larger group the main body for global economic coordination.

"Sarkozy thinks this is the best framework, and he wants to put an imprint on it," said Daniel Hamilton, director of the Center for Transatlantic Relations at Johns Hopkins University.

In his turn at the helm of the G-20, Sarkozy is looking to reform the international monetary system, ending excessive price swings in commodity markets and strengthening the International Monetary Fund.

Sarkozy thinks the global monetary system should not rely so heavily on the U.S. dollar as the world's main reserve currency. He has not proposed specifics about how he envisions a possible future system.

There are no announcements expected during his visit, but Sarkozy hopes to use talks with Obama and other world leaders to present his plans for a G-20 meeting scheduled this month.

Leaders from the G-8 countries, including Obama, are expected to attend a summit in May in the French seaside Normandy resort town of Deauville. Talks are expected to focus on green growth, innovation and partnership with Africa.

Over lunch with Obama, Sarkozy is also is likely to discuss political issues including Iran, the Middle East, Afghanistan, Pakistan and Ivory Coast.

French first lady Carla Bruni-Sarkozy plans to dine separately with Michelle Obama. Foreign Minister Michele Alliot-Marie and Finance Minister Christine Lagarde will also be attending.

[Associated Press; By DESMOND BUTLER]

Associated Press writer Sylvie Corbet contributed to this report.

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