Main focus of Thursday, April 2, 2009

Tense mood in London

Tension is brewing at the G20 summit in London as a result of differences of opinion over economic stimulus programmes and financial market regulation. It remains to be seen whether the heads of state and government of the major industrial and emerging economies can agree on a joint course of action.

Gândul - Romania

The Romanian daily Gândul writes on the unexpectedly tense atmosphere at the G20 summit in London: "Two highly explosive factors threaten the negotiations: the differences in opinon among the participants, particularly concerning the reform of the international financial system, and the persisting bad news about the serious political and social repercussions of the global economic crisis in the run-up to the talks. The crisis has toppled governments and is drawing more and more dissatisfied protesters onto the streets. ... These two aggravating circumstances are connected. You can't stop the crisis as long as you don't fight its causes, and that means the huge discrepancy between the world of finance and the real economy." (02/04/2009)

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Les Echos - France

According to the business paper Les Echos the various heads of state and government are pursuing entirely different goals at the G20 summit: "All agree that the G20 summit must not fail. … Yet it's plain to see that a G20 summit must first accommodate 20 egos. Barack Obama wants to preach to the somewhat jittery Europeans about the spirit of revival. Nicolas Sarkozy wants to restore order in the capitalist household. Hu Jintao wants China to finally be recognised as a major leader in global affairs. The list could continue with Gordon Brown, who will try to maintain his position at England's helm by casting himself as the saviour of the global economy. Or Angela Merkel, who is perhaps most concerned … about sparing her compatriots the nightmare of hyperinflation. What can such a disparate group of people possibly do to counter the first global recession since the end of the Second World War?" (02/04/2009)

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The Independent - United Kingdom

The liberal daily The Independent writes that France and Germany are challenging the Anglo-Saxon dominance at the G20 summit in London: "The last minute, and very public, démarche from the leaders of Europe's two biggest economies also casts the whole project for global economic management in a different light. The combination of a new and untried President in the White House, a rising China, a friendlier Russia and a more vocal Franco-German alliance marks a signal change. Yesterday, the United States and Britain seemed suddenly a little smaller, China a little bigger, and Continental Europe a force to be reckoned with. By tonight, an agreed international plan of action along US-British lines might have shown this incipient redistribution of power to be illusory. Anything else, however, and we may be looking at the outlines of a very different future." (02/04/2009)

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De Morgen - Belgium

A new front has emerged at the G20 summit between German Chancellor Angela Merkel and French President Nicolas Sarkozy on the one hand and Barack Obama on the other, writes the daily De Morgen: "The American vision that the unregulated free market ultimately offers more advantages than disadvantages lives on. The most the Americans want is to put a moral limitation on super-bonuses and other forms of greed. That does not go down well with Sarkozy, who is pushing for global regulation. ... There is now a distinct possibility that these differences of opinion will lead to a carefully formulated concluding statement saying nothing at all, and outlining merely one or two of the points negotiated, or perhaps none at all. That would be extremely unfortunate, because just a few months ago, as the full extent of the catastrope became clear, many leading politicians hoped ... this summit could lead to a new Bretton Woods with stricter controls for the financial world." (02/04/2009)

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All available articles from » Yves Desmet

Cinco Días - Spain

The Spanish business paper Cinco Días comments on French President Nicolas Sarkozy's threat to leave the G20 summit if he wasn't satisfied with the measures to be taken regarding tax havens: "This melodramatic emphasis on tax havens is particularly ironic because firstly it has nothing to do with the present crisis and secondly France is the benevolent protector of two of Europe's most secure financial havens: Andorra and Monaco. … That only a third of voters are happy with his performance at the moment could have tempted Sarkozy to make this dramatic gesture. If this is the case it means he still has a lot to learn about how to behave on the international stage. But the threat in itself is childish, almost irresponsible. It's time the French president grew up." (02/04/2009)

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More from the press review on the subject » International Relations, » Fiscal Policy, » France
All available articles from » Pierre Briançon

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