World leaders and diplomats at the 47th Munich Security Conference (MSC), which ended on Sunday, discussed a series of global and regional security challenges, ranging from the current unrest in Egypt to the situation in Afghanistan and the security issues of Europe.

Calling on Egypt to embrace trend of change

Leaders and diplomats called on Egypt to embrace the trend of change and begin transition in an orderly way during their three-day brainstorming, during which much time was devoted on the unrest in Egypt.

U.S. Secretary of State Hillary Clinton said on Saturday that change is a "strategic necessity" in the Middle East, while urging Mideast leaders to embrace democratic reforms in response to growing unrest in the region.

Leaders of Germany and Britain echoed Clinton's call for orderly changes on the same day.

"There will be change in Egypt ... but it needs to be changed in such a way that it is peaceful and orderly," German Chancellor Angela Merkel told the conference.

British Prime Minister David Cameron said, "We need change and reform and transition to get greater stability" in Egypt.

Problems in Egypt cannot be solved by just "flicking a switch and holding an election," he warned.

Russian Foreign Minister Sergei Lavrov urged Egyptians to find their own solutions through dialogue among all domestic political forces, adding that building a social-oriented economy will help establish democratic process.

On Sunday, UN Secretary-General Ban Ki-moon expressed his hope for a peaceful and orderly transaction in Egypt.

The leaders also discussed the situation in Afghanistan on Sunday. German Foreign Minister Guido Westerwelle said 2011 should see a significant shift in focus on Afghanistan issue, from military to political. Afghan President Hamid Karzai reassured that he was serious about fighting rampant corruption in the country.

Impact of Financial Crisis on Security

Politicians and economists at the conference have agreed that cooperation is necessary to overcome the impacts of a world financial crisis on security.

The financial crisis has forced Germany to strike a reasonable balance between mission requirements and financial resources, said German Defense Minister Karl Theodor zu Guttenberg on Friday during the first panel of the 47th MSC.

To face the tight financial situation, the minister called for more joint actions among Europe and NATO member states.

His call was echoed by NATO Secretary General Anders Fogh Rasmussen, who said that "the crisis makes cooperation between nations no longer a choice. It is a necessity."

He urged European countries on Friday to adopt a "Smart Defense" strategy in time of financial crisis, warning against excessive cuts on defense budget.

He said that while he understood governments' positions on cutting defense budgets amid financial crisis, but "if the cuts are too deep we won't be able to defend the security on which our democratic societies and prosperous economies depend."

To avoid such scenarios, Rasmussen suggested the NATO member states to adopt "Smart Defense" with the help of the NATO.

He said the NATO can help nations build greater security with fewer resources but more coordination and coherence through pooling and sharing capabilities, setting the right priorities, and better coordinated efforts.

"This is the time to make better use of NATO as an adviser and an honest broker," He added.

U.S. investment tycoon George Soros said Euro zone countries should cooperate on redistribution in the form of a conversion of debts to avoid enlarging the gap between indebted countries and donor nations, which may endanger the security in Europe.

New Start Treaty

Another achievement comes out of the conference was a new nuclear arms reduction agreement between the United States and Russia, which formally came into force on Saturday with the exchange of ratification documents by the countries' top diplomats in Munich.

The ratification ceremony of the new Strategic Arms Reduction Treaty (START) was attended by U.S. Secretary of State Hillary Clinton and Russian Foreign Minister Lavrov on the sidelines of conference.

The agreement will slash existing warhead ceilings by 30 percent over the next 10 years from a current cap of 2,200 to 1,550 and limits each side to 700 deployed long-range missiles and heavy bombers.

However, the pact only limits deployed strategic nuclear weapons.

The pact also re-establishes a monitoring system that ended in December 2009 with the expiration of an earlier arms deal. Russia and the United States have the right to conduct onsite inspections beginning 60 days from the agreement going into effect on Saturday.

Besides this treaty, both Clinton and Lavrov have displayed cooperative attitude towards the European missile defense system.

The Munich Security Conference was founded in 1962 and has since developed into one of the most important gatherings of security experts and decision makers in the world.