• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • The Outlines of the G-20 Deal Emerge, And They’re Not Good

    In the run-up to the G-20 summit in London on April 2, a curious division has emerged. On one side stand the U.S. and Britain, both sounding like continental Europeans in their enthusiasm for deficit spending. On the other stand France and Germany, rejecting stimulus packages but eager to impose a new system of “global governance” on the world’s markets and nations.

    As Sally McNamara has noted, Britain’s stance is a problem for the EU, which, as always, is seeking to use the global financial crisis to advance its aim of pulling Britain deeper into the EU and so weakening the transatlantic alliance. And Britain’s position is not strong: its banking system is in desperate shape, and Prime Minister Gordon Brown has staked his remaining credibility on making a success of the summit.

    It’s in this light that we should interpret the remarks of Jose Manuel Barroso, the head of the European Commission, after his meeting with Brown on Monday. Predictably, Barroso demanded that “Europe must speak with one voice in London.” But his comments later in the interview were more interesting. In an obvious effort to bridge the divide between the two sides, he urged all concerned to:

    avoid the false choice between fiscal stimulus or improved regulation. The reality is that we need both and I believe we are seeing convergence within Europe and with our international partners on this.

    And there you have the outline of the deal. Like all deals, it pretends to offer something for everyone: the U.S. and Britain will get a reference to their right to pass stimulus measures, and a vague statement that such measures may in some cases be appropriate for some states. And France and Germany will get the regulatory framework they desire. The Obama administration could then trumpet its protection of U.S. fiscal sovereignty and the vague endorsement of fiscal stimulus, while France and Germany got down to the serious business of not going deeper into debt and imposing new restrictions on Britain and the U.S.

    That would not be much of a deal. Stimulus packages are a bad idea, but the U.S. already has the right to pass them: a deal that simply confirms this unquestioned right, in exchange for regulations that would restrict America’s economic freedom and diminish its political sovereignty, would really be something for nothing. Let’s hope that the unelected Barroso is as out of touch with the realities of international politics as he is with the publics of Europe.

    Posted in International [slideshow_deploy]

    8 Responses to The Outlines of the G-20 Deal Emerge, And They’re Not Good

    1. dilu, Oregon says:

      Mom made me keep records, ACCURATELY, of my allowance before I got the next week's allowance. Golly, seems like the administrations (all of them, world wide) aught to be able to do that…..they are so much smarter than I.

      I see nothing wrong with living within our means, paying cash, whenever possible, waiting for gratification and having a budget that reflects our income.

      But that would be a Utopia.

      It all seems to come down to greed:

      seeking-power-seeking-money-seeking-power.

      I do believe the Good Book addresses this issue. It saddens me that our beautiful nation has forgotten her true roots.

    2. Recruiter, CT says:

      I fail to understand how anyone can think that tremendous deficit spending will do anything other than bankrupt our country. Obama is in so far over his head, it’s frightening. Global Currency. One World Order. Pretty soon, we will all be wearing American made Burkas. This madness has to be stopped!

    3. dr kennedy c.uba ,nigeria says:

      l believe that every country should fellow which ever path that is conducive and adequate or simplely that will get the job done for their respective economy

    4. Jolene Atkins, Dallas, TX says:

      Frightening Times! What on earth will happent to America’s sovereignity and economic freedom? One wonders just how much worse things could get. Having a president who is so anxious to be like Europe is frightening. I liked America just like it has been for all of my life. –I don’t think we have anything to apologize for to the other nations. We should hold our heads high. We have done more for the free world and to keep a free world than than most.

    5. Ken Rosenlund, Longw says:

      Thinking that the G20 conference is striving to join an amalgamated world power is just a bit premature. This is not just dangerous it is reckless. How can unity be brought with such turmoil in all of the nations of the globe. What is the consensus of mission of this? How does it involve the stake holders (The American Citizens) The Politicians need to be pulled in on the leash. I can only see Americans being mandated to pay for other countries debt.

      As Americans we have always been very generous to other countries. But the fact is when we could afford it. Our tax rate is heading past the moon; we are stumbling though the corridor being told that Government should socialize the health care system. I find that the timing is ill advised as has been the so called emergencies brought on by the sky is falling.

      Yes maybe it is broken but it does not need an overhaul it just needs to re evaluated and reenergized by private industry. We need to have industry concentrate on ROI not DNC or RNC. Having burocrats decide the risk vantage points of business is absurd. They lack the experience to execute solvent decisions in the correct reaction time to ensure business health.

    6. Tenn Slime says:

      ALL

      My Opine from the Big Muddy:

      1. The OBNA goal is the demise of the USA Capitalistics system. Refer to the Center for American Progress archives, Mr. Podesta led the effort.

      2. The UE goal is the unification, fiscally and culturally within Europe, with the USA being a faded entity.

      3. The Left's goal, across the Globe, is to re- establish the Soviet style regulatory rule across as many nations as are foolish enough to invite them into the tent.

      Marry these goals, correlate the advances in the Fiscal world,& the Cultural world and you have a Global community fast riding to destruction, socially, physically and fiscally.

      If one finds all this too much to grasp. Read the older texts, "Masters of Deceit", "Education for Disaster", "School of Chicago", by, in order: Hoover, Douglas, Lewinsky. For recent data, read the CPUSA;, Democratic Strategy;, Center for American Progress; sites, read their archives. The plan is plainly laid out.

      We, the USA Electorate swallowed the bait, last November, now it is time to regurgitate.

      Semper Fi

      end

    7. Norman (Baltimore) says:

      The "messiah" is changing our country from one of freedom, to one of a communist/socialist dictatorship. Note that the "messiah" has fired a CEO from his private company job, told two auto makers that they WILL submit a plan of reconstruction in 30/60 days, has taken over the largest banks in the country, hired every "yes" man he can find, being qualified or not, and most are not. He is dead set against the 2nd amendment, and on, and on. Be careful folks and be afraid…be VERY afraid.

    8. Pingback: Morning Bell: The G20 Threat to Economic Recovery | The Foundry: Conservative Policy News.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×