By Madeline Chambers
BERLIN, Jan 15 (Reuters) - European economic powers Germany and Britain expect G20 countries to make significant progress in boosting transparency and tightening supervision in the financial sector when they meet in London in April.
Britain is chair of the G20 group of big industrialised and emerging economies and Prime Minister Gordon Brown set out his ideas for the summit, which aims to build on financial reform pledges made in Washington last November.
"I believe we can find common ground that will make the agreements in April at the G20 a significant event for the world economy," said Brown at a joint news conference on Thursday with German Chancellor Angela Merkel after talks.
Both leaders emphasised the need for a joint approach with U.S. President-elect Barack Obama and Merkel said she would hold a Berlin meeting of European G20 members in mid or late February to help prepare the ground.
G20 members want more disclosure and transparency in the financial sector, said Brown.
"We believe that must extend to regulatory and tax havens and what is now called the shadow banking system," Brown said.
The financial crisis required action on impaired assets in the banking system, he added.
"It means we will need to have new standards of surveillance and supervision for global financial institutions."
In outlining his plans for the London meeting, Brown said he would talk to the heads of the World Bank, International Monetary Fund and regional development banks to see how they can have a more effective role.
Last month, tensions mounted between Germany and Britain after German Finance Minister Peer Steinbrueck attacked the UK's plans to borrow billions of pounds to try to protect Britain from the effects of recession.
Merkel faced criticism from abroad, as well as at home, for being slow to respond to the global economic downturn.
But this week, Merkel unveiled plans for a second stimulus package worth 50 billion euros for Europe's biggest economy and Brown said he believed others would follow Germany's lead.