Two weeks before President Obama and the leaders of 19 other industrial nations meet to confront a global economic contraction, top finance officials meeting here Saturday committed to take “whatever action is necessary” to revive consumer demand and regulate global markets. Even so, they still seemed to have divergent views on what actions are required now.
At the end of a lengthy meeting at a luxury resort outside London, the so-called Group of 20 nations, who together represent about 85 percent of the world economy, failed to offer specifics about the size or timing of coordinated economic stimulus, and some major players, including Germany and France, remain deeply reluctant to add to their national debt.
They did agree on Saturday to commit more money to help developing countries and the emerging markets of Eastern Europe, where the downturn has spilled into street protests. They also pledged to step up efforts to revive bank lending and regulate hedge funds.
But the vagueness of the commitment meant that it will be up to President Obama ”” and the leaders of China, Russia and European nations, among others ”” to convince the markets that they have a coordinated strategy as they prepare to meet in London on April 2.