G-20 heads for compromise on growth and reforms

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G-20 heads for compromise on growth and reforms

G-20 heads for compromise on growth and reforms
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World leaders at the G-20 summit are struggling to present a united front on the way to sustain the global economic recovery and reform the banking industry.

Last year they agreed to throw money at the financial crisis but that consensus is no more.

US President Barack Obama thinks the world economy needs more stimulus. The Europeans say more belt-tightening is the key.

A draft copy of the communique`they’re expected to issue later shows those differences will be papered over.

They are expected to commit to work together to
halve their deficits within three years and stabilize government debt as well.

But they recognise that the start of the process will take place at different speeds and that each needs a different strategy.

On financial reforms, the draft communique shows they will have a choice on a bank tax.

Germany, France and Britain want a levy on banks to pay for any future crises but Italy disagrees.

Still the disunity isn’t universal. The British Prime Minister can rest assured he has re-affirmed the relationship with the US President.

The two have also agreed that their contributions to the conflict in Afghanistan are finite, beginning to end before either has to face the voters again.