Has the G20 solved anything?

While I am writing this, leaders of 19 countries plus the European Union are gathered in London at what has been described as the G-20 Summit. The purpose is get the world out of recession and get the global economy going. It is easy to say but not to do even if by the end of the summit as tradition holds a kind of agreement would have been reached. In it the major differences are likely to be smoothed out in wording in a final communiqué that each country will interpret differently. The main difference is between the countries like the UK and the US which want more stimulus spending and the countries like France and Germany which are asking for more regulations with tighter financial supervision. The reason of this disagreement lies in the different cultures mainly of the US and the EU. The US has inserted in its enormous stimulus package provisions for development of the health care and education in the country, both of which as well as the protection of the unemployed are much more needed in America than in Europe. As José Manuel Barroso, president of the European Commission, said, the position of unemployed in a U.S city such as Detroit could not be compared with the jobless in Belgium where they are still receiving half their old salary six months after losing their job. “You cannot compare the E.U. to the U.S.,” added the Dutch prime minister Jan Peter Balkenende. “We have very sound security networks where people who lose their jobs are looked after.”
In a way, the money many European governments spends making sure its citizens are taking care if they loose their jobs or are in need of health care as well as contributing to their education could be considered money spent in a stimulus. And that is why German Chancellor Angela Merkel and French President Nicolas Sarkozy are adamant in their refusal of adding to the public debt of their countries in form of additional stimulus. They point out that Europe has coughed up more than $538 billion in stimulus, including $67 billion for the IMF, earmarked for a crisis in East and Central Europe.
While the United States was determined to resist European efforts to create regulatory authorities with cross-border authority, President Nicolas Sarkozy of France made it clear he would reject an agreement that puts off stringent new regulations on banks, tax havens, and hedge funds, and Chancellor Angela Merkel of Germany said more spending was not worth debating. “That is not a bargaining chip,” she said, adding, “Regulation is something that is in everyone’s interest.”
So were the things a few hours ago. Now nearing the completion of the summit everybody is waiting for the last announcement. After that and in the following days and weeks much would be written about the G-20 Summit and we will be able to see if the time and expenses that have gone into it were worth it.