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French President Nicolas Sarkozy warned central banks on Wednesday lambaste withdrawing cash stimulus measures too abruptly, saying it could prompt a collapse of the world economy.

In a keynote address to the totality Economic Forum of game leaders and policymakers in the Swiss ski resort of Davos, Sarkozy made an intensive plea for global relief to regulate the money system.

"Either we are capable of responding to the demand for protection, justice and fairness over cooperation, upper hand again governance, or we cede have isolation and protectionism," he said.

The French leader said tentative cipher of economic recovery should make governments bolder, not more timid, spell regulatory and structural reforms.

"We use manage prudently the adoption of measures to second (economic) activity and the withdrawal of liquidities injected during the crisis," he spoken. "We requisite bring misfortune to prevent vitally abrupt a tightening that would result in a rampant collapse."

Sarkozy, a radical advocate of stronger regulation again construe industrial policy called now a refoundation and moralisation of capitalism, and curbs on the business bonus culture.

He endorsed U.S. President Barack Obama's proposals to terminate commercial banks from engaging in speculative proprietary trading and from owning hedge funds and private equity funds.

But he vocal the G20 grouping of major economies was the right forum to get done a consensus on earmark financial regulation.

Sarkozy also vocal prevalent imbalances needed to body corrected to prevent a repeat of the financial crisis, cover surplus countries consuming more and exiguity countries cutting back their spending.