The US will have to work against the finger pointing and name calling at the same time as world leaders look to Obama to propose a plan to revive the the World’s economy. There are two main topics for the one day G20 meeting that starts tomorrow:
1. Macro Spending Plan to reactivate the Global Economy
2. Tougher regulations for the Financial Sector
The problems start with which is more important and various world leaders have conflicting agendas.
France and Germany have already established a hard stance regarding the need for more regulation. French President Sarkozy even threatened to walk out and deemed new financial regulation non-negotiable.
Japan, India, China and the US favor starting with a Macro Stimulus Plan with input from all G20 members. Other countries seem to be caught in the middle like the United Kingdom.
A Bloomberg poll found that 18% of British Bankers (with 10 or more years of experience) were confident in the creation of a global regulatory system.
The head of the FSA, The British Financial Services Authority, Adair Turner presented a plan 2 weeks ago calling for more government oversight. PM Brown will use this plan as a blueprint before the G20 which seems to indicate the UK is following more closely the European agenda.
One topic on the G20 that everyone seems to agree on? Increase the size and reach of the IMF.