The G20 finance ministers and central bankers are in Horsham in the UK in an attempt to weld together a common strategy to fix the world’s ailing economy. However, there are more cracks than backslaps. Japan joined the United States in urging yet more government spending to combat the economic gloom. But mainland Europe wants a major overhaul of the banking system.
British Finance Minister Alistair Darling said: “We need to sort out the problems that still bedevil the banking system, in most parts of the world, because until you fix the banking system it is going to be much more difficult to fix the wider economy, and one of the things we’ll be discussing this weekend are steps we need to take to get to speed up that process of getting bank lending going again.” Its something that World Bank President Robert Zoellick agrees with, Zoellick said that fiscal stimulus without appropriate banking reform would be like a “sugar high.” The divisions are raising doubts about how successful the talks will be in developing a common agenda ahead of the G20 proper in April.