London G20 Summit Expectations

In Financials, Politics on March 29, 2009 at 13:17

g20-summitFollowing the G20 summit in New York almost four months ago, global leaders are meeting again in London this coming week to discuss and try to resolve our world’s major threats. Economic crisis and environmental issues are expectedly at the top of the agenda. What is worth noticing, though, is that there seems to be a climate of divergence in economic policies that Europe and the US are adopting. Not so long ago, the Czech PM described Obama’s economic stimulus plan as “a road to hell”. Europe holds a rather reactive stance on recession as it’s afraid that massive spendings and zero interest rates could soar inflationary pressures in about two years time. Well, isn’t this what the ECB exists for? – to increase interest rates and withdraw money from the economy to curb inflation. The main issue though is that policies should be co-ordinated because if one country decides to bolster its domestic consumption  this will only increase its imports assuming its trading partners have not adopted similar expansionary policies. This is a global recession and requires globally collective and simultaneous action.

Needless, to say that protests have been escalating all over the world as the G20 summit culminates.”Tens of thousands of trade unionists, environmental campaigners and anti-globalization activists took to the streets of London on Saturday to start five days of protests before the G20 summit.” The agenda is bigger than ever and the stakes are really high. As unusual as it sounds, it’s time that leaders put the world’s interest ahead of their country’s interest.

There will be post-G20 Summit coverage next week..

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