LONDON — To spend or regulate their way out of the world recession? That’s the question finance ministers and central bankers from the Group of 20 countries will take up during a two-day gathering starting today in Britain.
With Europeans focusing on greater oversight of financial markets and the United States backing bigger stimulus spending, the widening cracks on policy are raising serious doubts about how successful the gathering will be in developing a common agenda for the full G20 summit of heads of state and government next month.
“The omens are not good,” said CentreForum economist Giles Wilkes of the meeting that will gather governments representing 80 percent of the global economy.
The Europe-U.S. split is exacerbated by demands from major developing countries, such as China, India and Brazil, for a bigger say in a reformed world economic order.
U.S. Treasury Secretary Timothy Geithner clearly set out his position this week, saying it was essential for other major countries to commit to substantial and sustained efforts to bolster their economies in the face of a deepening recession.
