San Salvador, El Salvador - Spanish Prime Minister Jose Luis Rodriguez Zapatero on Thursday joined calls for a "new financial world order" with stronger mechanisms for control and transparency.

At the Iberian American Summit in San Salvador, the centre-left Rodriguez Zapatero criticized the "myth of deregulation" which according to him put speculation and greed, and the unbounded craving for greater benefits, above the productive economy.

He demanded a redefinition of the role of the International Monetary Fund (IMF), giving emerging and developing countries a greater say, so that international financial institutions "reflect the current geopolitical reality."

Rodriguez Zapatero praised the progress made by Latin America in recent years, and stressed that Spain will not cut down development aid at timed of crisis.

"At a time in which the economic outlook is complex and difficult, commitment in the field of cooperation for development acquires even greater value, it must continue to be a priority," he said.

The Spanish prime minister noted that 40 per cent of his country's aid goes to Latin America.

Spain's King Juan Carlos, in turn, focused on the summit's motto, "Youth and Development," and underlined the importance of creating conditions for the full development of Latin America's young people.

"If we do not achieve that, we will be committing the fate of our children and not abiding by our responsibilities," he added.

The 18th Iberian American Summit brings together the heads of state and government of Latin America, Spain and Portugal, with the exceptions of Venezuela, Uruguay and Cuba.

It opened Wednesday with a dinner, while debate started Thursday.

Iberian American summits have been held annually since 1991 to bring together Latin American nations with Spain and Portugal. (dpa)