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Sarkozy insists there is 'no agreement yet'
Paul Waugh, Deputy Political Editor01.04.09
FRENCH president Nicolas Sarkozy and Germany's Angela Merkel exposed the split at the heart of the G20 summit today by warning that they will not tolerate a fresh global economic stimulus package.
Mr Sarkozy said that he would not sign up to "false compromises" at the London gathering, telling Europe 1 radio: "As of today, there is no firm agreement in place."
"The conversation is going forward, there are projects on the table. As things stand at the moment, these projects do not suit France or Germany."
Mr Sarkozy and Chancellor Merkel were set to stage a joint press conference demanding that the summit bring in a new era of global regulation of banks and bonuses, as well as hedge funds and offshore tax havens.
But in a counterweight to Gordon Brown and Barack Obama, the two leaders were determined to signal that Europe should not incur yet more debts to tackle a global recession triggered by what they see as Anglo-American failure to police financial markets. Both Berlin and Paris have agreed to substantial "economic stimulus" packages but are reluctant to commit further funds, particularly as they blame the US for causing the credit crisis with unregulated sub-prime lending.
However, Japan weighed in behind Britain and America today as premier Taro Aso said that more money was needed to stave off the downturn. He said that Germany didn't understand why "fiscal mobilisation" was vital to injecting demand into the world's economy. David Blanchflower, a member of the Bank of England monetary policy committee, today backed world leaders such as President Obama who are pushing for more fiscal stimulus.
He said unemployment was the biggest problem for the UK economy and could breach three million by the end of the year, having recently topped two million for the first time since 1997.
Mr Blanchflower, who spotted the recession far sooner than others at the Bank and in government, said the cost of not tackling unemployment would be dire.
Reader views (17)
So what ? Let them drown.
France doesn't make anything except cheese and wine nowadays and all the productive companies that don't have partial state ownership have relocated to tax havens, like the UK.
Freedom from regulation is what we have, an out of date mess is what they have.
Germany on the other hand does still produce goods that are sellable, but they don't want to underwrite France's (and the rest of poor Europe's) debts, so really Sarko is leashed to Merkel and German economic power in reality.
French 'people' may be rich, but they're all heading over the border to Switzerland or Belgium where their taxes are lower, never to return.
- Madmax, London, UK
Much as I hate to say it, the French and the Germans have a valid point. I understand they want a stronger institution to oversee the banks and keep them in line. Heavens knows, the FSA and the American equivalent have failed dismally - that's why we are in this mess.
- Norcot, Oakham
Frankly, it's a bit rich to be lectured by France on corporate regulation when you consider all the corporate scandals in France over the last few years; not to mention the fact that AIG was registered there and the Bank of France did nothing.
- Alan, London
VIVE LA FRANCE VIVE LA REPUBLIQUE
- Arthur Ruse, dover uk
Saying he'll walk out doesn't bode well for 'logical argument'. Remember, this is the President of a country that owns much of our water and electricity supply but who would not allow the takeover of Danone because it's 'strategically important'. Sarkozy will boast endlessly about the French being better Europeans than we are, but which mugs (step forward the UK) are the only ones to truly embrace the original aim of a 'common market?'
- Paul, London
Maybe Frank; they are rich; as we are subsidising their cheap power bills with our expensive ones.
Thanks to Thatcher; we are dependent on expensive foreign power supplies; as she sold all of ours off cheap; for tax cuts.
Mind you the tax cuts never lasted long; we are paying more than ever now; and will continue to pay; till we take it all back; but don't hold your breathe, the EEC and globalization, rule us now.
- Mickyinlondon, london
"French people are the third richest people in the world .."??!!
How did you work that one out?
- Frank, Home Counties, England.
There are plenty of people in this country, myself included, who are not at all persuaded that incurring further debt to provide a "stimulus" is the best thing to do. There is a case for what Merkel and Sarkozy are saying and there is little point in us aspiring to global solutions if we cannot accept that others have a point of view that needs to be answered by logical argument rather than xenophobic abuse, however well disguised.
- James Elliott, Eastbourne UK
To Stefan,
French people are the third richest people in the world thanks to our savings. France has a bigger GDP compared to UK. Do you think your comment is relevant?
We have a lot of things to learn from them...
- Paul, Lyons, France
Well this is all too much... having a go at Sarkozy for defending France's interest. Just a recent example: British jobs for British workers, remember? As for Anglo-Saxon bashing, hardly a week goes by without somebody bashing France and to a lesser extent Germany, Spain, Italy or whatever other foreign country comes to mind at the time. Besides all this, it may be worth asking ourselves whether incurring yet more debts to tackle a global recession is the answer so Sarko and Merkel may not be so wrong after all. However, agree that this very handy for little Sarko who currently needs to do something big to improve is increasingly poor profile at home.
- Daniel, London
Oh please - what is cowardly about the French looking after themselves? If we had the same attitude ie Britain for Britain we wouldn't be in this damn mess in the first place!
- Maria, London UK
...'demanding that the summit bring in a new era of global regulation of banks and bonuses, as well as hedge funds and offshore tax havens'. Is this such a bad thing? We've already rewarded the the most pernicious people in society that I could possibly have imagined. I'm glad that we have two prime ministers that will at least question Gordy. He tries to ride rough shod over everyone - the guy is a HUGE liability.
- Geoff, In the country
Since when have we listened to diminutive Frenchmen with a power complex? I think Napoleon was the last to try it - look what happened to him.
- Nobby Clark, Perth, Scotland
Typically cowardly French:
Bad ratings at home? Then do some Anglo-Saxon bashing.
Nothing positive to offer except self protectionism. France for France, sod the world.
- Frank, Home Counties, England.
I'm glad the Evening Standard isn't following the Labour line of "all is brilliant and Gordon's in charge".
Paul, I agree to a certain extent, but have grown to admire the French view of revolution, blockades, and burning lorries when they're not happy about something. At least it beats apathy faced with the single most incompetent self-seeking Government in British history.
- Marianne, SW France
I thought the G20 is current and future economic powers. So who invited the French?
- Stefan, London
Sarkozy is already looking a busted flush. After so much early promise it's back to the usual French stance of stamping his foot and threatening to throw all of his toys out of the pram if he doesn't get his way.
- Paul, London
