Sarkozy raps globalised economy

French President Nicolas Sarkozy has warned of political and social unrest unless there is greater regulation of the globalised economy.

He argued that the current system of "speculation and dumping" cannot continue. "We have to overhaul everything," he said.

He called for a larger role for social institutions in financial regulation.

The president was speaking in Geneva at the invitation of the International Labour Organization (ILO).

'Obsession'

"Regulation of globalisation is the central issue," he argued.

"Either we have reason or we will have revolt. Either we have justice or we will have violence. Either we have reasonable protection or we will have protectionism.

"It is irresponsible to believe that the financial markets can continue to impose their obsession with short-term profit on the entire global economy, and on society," he added.

Earlier on Monday, the US government outlined plans that will lead to tighter regulation of the biggest financial institutions and a new framework for consumer and investor protection.

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