Mandelson calls for a regulation light touch

Business Secretary Lord Mandelson today warned that governments should not allow anger about the credit crunch to stifle financial markets with excessive regulation.

Speaking at the annual Google Zeitgeist event, organised by the internet giant in Hertfordshire, Mandelson said: "The risk is that we rush into re-regulating the markets as a point of principle, as a political attempt to demonstrate control, rather than recognising the choice is between good and bad regulation, not regulation and no regulation." He added that it was vital to maintain free trade for the health of the world economy.

Around 400 delegates are attending the Google Zeitgeist which is in its fourth year. Although it is a private event, the media are invited to some sessions.

Speakers tomorrow include Prince Charles on the environment, shadow chancellor George Osborne, ex-No10 spin doctor Alastair Campbell, Sir Richard Branson and Google co-founder Larry Page.

Nikesh Arora, Google president of global sales, said that the Zeitgeist's aim was "to take stock of where we are and to discuss and debate how we can all make a difference".