So the G20 has turned out to be a bit more than just handshakes and gift giving (you saw that Obama gave the Queen an iPod, right?). It wasn’t clear what the results of this grand gathering of world leaders would be there have been times where nothing meaningful gets done and others, like the last oneat the start of the financial crisis, where action is taken. Of course, this might be the most watched G20 ever, so it would have been a shame if nothing happened.
It’s not over yet, but word from London is that the governments have pledged more than $500 billion to the International Monetary Fund so it can offer more loans to struggling countries.
According to a CBC article, a lot of that dough would come from China, which in return would be given more say on the IMF.
One hot button issue this year was stimulus funding. Most countries have offered a first wave of rescue dollars, but some France and Germany specifically have been resistant to dole out more cash. They want more regulation instead. That’s frustrated the U.S., who see stimulus spending as a main way to get the global economy moving again.
It was pretty clear that France and Germany wouldn’t budge on this point, and they’ve since made it official.
From the CBC story:
Leading into the meeting, French President Nicolas Sarkozy and German Chancellor Angela Merkel refused calls for more government spending and said Thursday’s meeting must take concrete steps on tougher financial regulation. Sarkozy has previously threatened to walk out of the meetings rather than agree to a”false compromise.”
France and Germany have also reportedly persuaded the other leaders to back tougher language on stronger financial regulations to avoid a repeat of the current crisis.
Leaders were moving “slowly together” on the regulation issue, a French official told the Associated Press on the condition of anonymity.
So we’ll see what the official comment is at the end of the meeting, but here’s what’s happening so far.
Anyone want to weigh in on what they think should come out of the G20? Comment below.