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I’m backing G20 goals, says Obama in boost for Brown
Joe Murphy11.03.09
Barack Obama has backed Gordon Brown's call for an international spending plan to lift the world out of recession.
The US President also supported the Prime Minister's call for new banking regulations to be agreed at next month's summit in London.
“We've got two goals in the G20,” Mr Obama said. “The first is to make sure there is concerted action around the globe to jumpstart the economy. The second is to make sure we are moving forward on a regulatory reform agenda.”
His intervention was a huge boost to Mr Brown who had earlier been battling to ease concerns that the London summit would fail to make a breakthrough.
Chancellor Alistair Darling said this afternoon that countries around the world must admit they needed to work together to beat the slump.
“In our globalised economy a pound spent in Beijing or Bremen is a job saved in Bradford or Birmingham,” he said. Mr Darling denied that the Government had problems dealing with the Obama administration, contradicting Cabinet Secretary Gus O'Donnell who this week said: “There is nobody there. You cannot believe how difficult it is.”
Gordon Brown was forced to defend the summit today after doubts about what it will achieve to beat the recession.
A business leader complained Mr Brown was focusing on “totally irrelevant” issues, such as bankers' bonuses and tax havens, and a government minister warned it could be a “disaster”. Martin Broughton, CBI president and chairman of British Airways, said free trade and a big economic stimulus should be the main target.
But Downing Street rejected the criticism, saying the G20 summit on 2 April would have a very wide-ranging agenda.
No 10 also defended the costs of staging the summit, revealed in yesterday's Evening Standard to be £19 million.
The sum is less than a quarter of the £80 million spent by Tony Blair on the 2005 Gleneagles summit and a fraction of the £205 million spent by Japan on last year's G8. “That cost reflects the general approach which is to keep the summit modest and businesslike, and to focus on the issues,” said the No 10 spokesman. He admitted there were “different views” among world leaders about free trade, but said the issue would be fully aired to get the best agreement.
But Lord Malloch-Brown, a Foreign Office minister, warned expectations were so high a summit failure would be a disastrous. He said: “If we get anodyne conclusions with all the substance taken out of them, the markets on 3 April will be something of a disaster zone.”
Gordon Brown was forced to defend the much-vaunted G20 London summit today amid doubts about what it will achieve to beat the recession.
A business leader complained the Prime Minister was focusing on “totally irrelevant” issues, such as bankers' bonuses and tax havens, and a government minister warned it could be a “disaster”.
Martin Broughton, CBI president and chairman of British Airways, said free trade and a big economic stimulus should be the main target.
But Downing Street rejected the criticism, saying the G20 summit on 2 April would rightly have a very wide-ranging agenda: “It is also important that as we assess the global regulatory system, we look at the culture in the banks — and central to that is their remuneration system.”
No 10 also defended the costs of staging the summit, revealed in yesterday's Evening Standard to be £19 million.
The sum is less than a quarter of the £80 million spent by Tony Blair on the 2005 Gleneagles summit and a fraction of the staggering £205 million spent by Japan on last year's G8.
“That cost reflects the general approach which is to keep the summit modest and businesslike, and to focus on the issues,” said the No 10 spokesman. He admitted there were “different views” among world leaders about free trade, but said the issue would be fully aired to get the best agreement.
Mr Broughton told the Financial Times it would be “nothing short of a catastrophe” to get “bogged down” in the wrong issues when there was a chance to make a difference. Averting protectionist policies and cutting employment costs were the correct priority, he said.
The businessman also pointed out that global leaders promised to champion free trade at November's Washington G20 meeting but some imposed import controls anyway.
Lord Malloch-Brown, a Foreign Office minister involved in preparations, warned that expectations were so high a summit failure would be a “disaster”.
“If we get anodyne conclusions with all the substance taken out of them, the markets on 3 April will be something of a disaster zone, I have no doubt,” he said.
Mr Brown has invested a lot of political capital in the G20 at which he hopes world leaders, including Barack Obama, will agree to spend their way out of recession.
So keen is the Government to ensure it gets attention, taxpayers will fund the cost of TV coverage and a ferry service across the Royal Docks for journalists.
Worries over G20 increased when Cabinet Secretary Sir Gus O'Donnell said dealing with Mr Obama's fledgling administration was “difficult”.
Reader views (23)
The Financial Times has today quoted the Queen asking "Why did nobody see this coming".
To be honest some people knew exactly what was about to happen even back in Autumn of 2006.
I had recently moved to London and had landed myself a nice job in the city, not well paid but nice. A fellow worker from Hertfordshire said he was going along to a free investment seminar and advised me to tag along. I had recently finished reading a book called "Rich Dad, Poor Dad" and my next lesson as adviced in the book is to take advantage of free and low cost investment seminars.
On that wet autumn evening in 2006 I walked through the city and spent three hours learning about money and investments. It was inspirational and opened my eyes.
For about ten minutes of that three hours we were demonstrated by charts and history what was about to happen with international markets and a huge recession looming. We were taught how the rich get richer and the poor 80% loose out.
I stopped looking to buy a home that night and waited, whilst friends in the city laughed at the advise, were smug and rich during the end of the good times, I waited. Like clockwork the city started to fall about three months after the dates shared.
Those people running the seminars were waiting to invest and spread bet in a down market. I'm guessing they're now retired.
Some people always know. A valuable lesson.
- Richard, Bristol
You talk as if the majority of people in this country want a Conservative government. 100% - 41%(Con)= 59%. That's the percentage of people in this country who do not want what you want. Wake up and smell reality!
- Val Daniels, Mijas Costa, Spain
Michael, London.
So I am not alone in thinking that the last days of this Labour government will be remarkably similar to the last days of the nazi party in Germany. Everyone frantically rushing around trying to burn documents and other evidence of what has really been going on for the last 12 years.
- Jimbob, Kensington
Don't come to the USA just yet - we've got a socialist government here too (at least, that is, for the next 4 years - just like everyone else, Americans need to burn their fingers before learning not to touch the hot plate).
- Rogan, Irving
I agree with these comments, what's worrying is that it seems to be a process of misdirection. I suspect this huge push for him trying to stay in power, knowing he is not suggests that when the new administration takes over they are likely to find information, documents or other that directly involves him and his cronies in the creation of this mess. Why would he be acting this way otherwise, it's as if he/they are hiding something that they don't want to come into the public domain.
- Michael, london
I often wonder if Brown and NuLabour have any inkling at all, just how much the taxpayers of this country, absolutely despise him, and them.
- David, Fleet UK
So the british taxpayer is funding Broon and NuLabour so they can get re-elected. Our government would be a disgrace to a third-world dictatorship. Obama backing Broon is not going to help though. Even if Mother Theresa, Gandhi, Nelson Mandela and David Cameron came out for Broon he would still lose because every one who is not on this mendacious, corrupt government's payroll will vote ANYONE BUT BROON & CO.
- Andrew E, Leaving the sinking ship England
Let's not get into a lather. Crash is irrelevant. He is the 'no return' PM. No return to Boom & Bust, No return to Irish violence, No return to No. 10 post April 2010.
- Alan, Surbiton, UK
Printing money to fill the bottomless hole into the unknown; wasting and spending tax-payers' hard-earned money on unplanned, unwanted and unnecessary gimmicky policies and on their so called 'entitled' expenses; re-shuffling and re-cycling of the same old INCOMPETENT, CLUELESS ministers for top jobs; the out-of-control and unknown hundreds of thousands of illegal immigrants waiting patiently for Labour's 'humanity' amnesty. This government is built wholly on SPINS, LIES and GREED. I agreed with some other readers that this costly summit is well-planned to portraying Brown as 'saviour of the world' and the 'nation' (hoping for another term to ruin the country further).
- K Lee, Cheshunt, UK
Any announcement from this summit will be spun to sound as if gordon has achieved something. As always it will be nothing but smoke and mirrors with no real substance and no real impact on the UK or it's people. for god's sake Gordon LEAVE NOW!!!
- Malcolm, London
What a waste! He is going to make a fool of him again with his big speeches and small results.
- Georgie, Islington, London
I think it is time for Mr Brown to stop trying to get re-elected. It is time for him to decide what is best for the longterm future of the country and instigate the right policies even if they don't bear fruit until after the election. Then he might avoid always being referred to as an example of what not to do.
- Alex C, London
I do wish Mr Broon would simply admit that he is not up to the job and step aside to allow a general election. Only once these Labour buffoons have been kicked out can we start to move the country forward.
- St, London
Let's hope Obama brings Brown a multi-region DVD player as a gift so that the Prime Minister can spend more time with his family watching the NTSC video box set Obama gave him on his recent trip to Washington.
- Lawrence, Spain
The sickening aspect of Brown's motive and grandstanding prior to the holding of the G20 is dictated purely for self promotion and a pathetic attempt to arrest the decline of Labour's position in the polls. Matters that Brown considers will assist in him retaining his Prime Ministerial post will have prominence and any other matters pertaining to improving the world's economy will be of secondary importance.
- Bingham Macnamara, lymington, hampshire
It's not the summit that's subject to grave doubts .... I'm struggling to remember a single good thing Crash has been associated with this last year and a bit.
- Marianne, SW France
The money being wasted on the security and policing too? Taxpayers money! The police in London will have enough to do with preparing for the expected chaos the protests on April 1st will bring without this idiot making things worse.
People tried telling him what a numpty he was on the radio yesterday - he just doesn't listen. He is a CLOWN!
- Ranter, Maidstone, UK
Is it no wonder "CLOWN" bottled a general election and forced his way into No.10 unelected.
Claims to being an intellectual is just more evidence of just the opposite. The electorate are simply not as gullible or dumb as he think.
"Never has so many been duped by so few" God help us all while this idiot is still running the country.
- Asw, HK
What is the purpose of this summit? The last visit of President Bush bought chaos to the capital as security concerns meant major roads were closed for many hours.
This will not showcase London in a favourable manner, it is just a backdrop to Gordon Brown as he attempts to grandstand.
Why would the Obama team be interested in being involved, their view is that he was Chancellor in the decade before the crisis, during which he introduced the 'Tripartite' system of regulation that divided duties between the Treasury, the Bank of England and the FSA to disastrous effect!
More recently Gordon Brown watched as Northern Rock collapsed, he allowed RBS to be run by a man he knighted for 'services to banking' and pushed the healthy Lloyds bank into a terrible merger with HBOS.
What more can he prove to demonstrate his competence?
- Manny Goldstein, London, UK
What a pity the EU fisheries commission doesn't have a quota on red herrings.
McBroon would be bankrupted by the fines by now!
- Keith Lonsdale, Doncaster
It will be another talking shop for Gormless Gordon to say how he saved the world. The Yanks don't want anything to do with him because they fear they will be tarnished with MacBroon's incompetence
- Trevn, Abu Dhabi
Why should tax payers be forced to pay for Brown's latest publicity stunt? If he thinks it will boost his ratings in the opinion polls he is even more deluded than I thought he was.
- R.F., Yorks, UK
Only 14 months to go ,and counting, before this government is consigned to history, for all the deliberate damage they have done to this country.
- David, Fleet UK
