Gordon Brown battles to save G20 agreement from Franco-German opposition

[CHIMO]

Source: The Guardian

Gordon Brown was battling last night to prevent Franco-German brinkmanship from wrecking his hopes of an historic agreement by the G20 countries today to reshape capitalism and revive the stalled global economy.

In a day of breathless diplomacy in London, ranging across arms control and financial capitalism, Brown and Barack Obama emphasised a developing convergence, only for Nicolas Sarkozy, the French president, and Angela Merkel, the German chancellor, to lay down "non-negotiable red lines" on issues such as hedge funds and tax havens which they insisted had to be met today and not deferred until future gatherings.

The belligerent tone jarred as it came hours after Brown, standing side by side with Obama in the gilded splendour of the Foreign Office, had declared that the leading countries were hours away from securing a deal to reform the global economy.

Far from rowing back from the aggressive posturing which Sarkozy had adopted before flying to London, the French leader resumed the theme, saying this was no time for making "fancy speeches" and dismissing the idea of a summit later in the year. Speaking at a Knightsbridge hotel, he said he trusted Obama, but he blamed America, saying: "The crisis didn't actually spontaneously erupt in Europe, did it?"

Read more: http://www.guardian.co.uk/world/2009/apr/02/g20-london-france-germany-deal

[MannyGoldstein]

1. Sarkozy & Merkel: Rat-Bastard PUMAs!!!

They just hate Obama because he robbed Hillary of the election!!! Or so it would seem from all I've read here at DU!!!

Fortunately we finally have a President who can hang tough against those foreigners.

Freedom Fries for all!!!

[SurfingScientist]

4. Actually, Merkel and Sarkozy seem to have a good point...

... pushing for binding regulations of the running-wild financial industry.

Saw this reported both in US and Euro media:

http://www.msnbc.msn.com/id/29985932/page/2/">MSNBC

Paris and Berlin want definitive agreements on a crackdown on tax havens and action on other regulatory issues, rather than simple commitments to reform. The summit is also expected to consider lightly regulated hedge funds and how to clear bank balance sheets of shaky securities.

Sarkozy said that "without new regulation there will be no confidence. It's a major non-negotiable objective."

Merkel said both she and Sarkozy had come to London "in a very constructive mood." But she said, "We do not want results that have no impact in practice."

Althought Merkel and Sarkozy certainly pursue some not-so-altruistic political goals, some of the points they insist on are absolutely essential to lay chains on the Wall St guys and to attack the financial crisis at its very root.

[Odin2005]

9. But they seem the be downplaying the need for stimulating the economy.

Yes, re-regulating the financial system is 100% necessary but the way it's been sounding Snarko and Merkel have been badmouthing US and UK economic stimulus packages.

:shrug:

[SurfingScientist]

12. You are right. I am not sure what to make of this...

... as most people, I am not fond of bailing out a giant Ponzi scheme with taxpayers' money, but agree with the Obama/Brown camp that some bailouts are a necessary lesser evil to preserve the flow of money and jobs. Not sure why Merkel is opposed to that - she is a Physicist and certainly can do her math. Maybe there are some parts of the story I don't know.

[diane in sf]

2. I agree with the French and Germans--I hope this adds to the pressure to regulate

the investment industry.

[MarjorieG]

5. They want global regulator, free to go into any country, if heard right. Obama does not.

[ConcernedCanuk]

3. When the Obama's get their puppy, it better not be brown . . .

.
.
.

The World might notice . . .

sumthing to ponder . .

[DissedByBush]

6. Save it? Doesn't sound like it.

It looks like Brown is battling to prevent any real reform from happening.

[PSPS]

7. You're right. Brown and Obama are obstacles to anything meaningful being done.

[Cousin It]

8. Brown......

.....is at root a socialist who understands economics. Obama is a Democrat.

Meanwhile Sarko is a posturing right wing Napoleon with a world of unpopularity at home, leading a country that considers good economics in terms of getting paid to burn food.

Maybe Brown and Obama know something you don't ?

[Odin2005]

10. "Sarko is a posturing right wing Napoleon" LOL, so true!

you owe me a new keyboard! :rofl:

(And I agree that France's love of Ag subsidies is fucked up.)

[Jennicut]

11. Sarkozy and Merkel are conservatives in their countries, aren't they?

[DissedByBush]

13. Meaning of conservative not the same

Merkel is in the CDU party which in German politics is right of middle. But German politics are shifted left compared to us so she is more like an American Democrat, especially on issues of economy and workers, what they call a social market economy. The SPD is the main opponent of the CDU and is more like the left, more truly socialist wing of the Democratic Party to include much of Ralph Nader's Greens. Their FDP is considered right of the CDU, and it is more like Republicans. Their Greens almost make Ralph Nader look conservative.