CSMONITOR: US and European paths to recovery diverge - by Robert Marquand

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US and European paths to recovery diverge - by Robert Marquand

President Barack Obama, British Prime Minister Gordon Brown, and European leaders want the crucial April 2 London Group of 20 summit to end in a spirit of unity – a plan bold enough to check and reverse the global economic crisis. Yet a week ahead of the G-20 meeting, a fundamental difference in US and European priorities is intensifying in the public arena. The divide over the balance of stimulus and regulation reflects differences in Euro-American cultures, institutions, leadership – and not least, in German Chancellor Angela Merkel’s concern about keeping voters happy ahead of September polls. Whether the sides can hammer out an agreement – and how final decisions will be presented – is the trillion-dollar question. A cacophony of top voices is rising. European Central Bank chief Jean-Claude Trichet opposes stimulus, as does the German finance minister, the British central bank chief, the European president, and others.

Note EU-Digest: The European approach to resolving the crises has far less risks than the US/British plan, which creates an enormous debt at the expense of the tax payer and with little guarantee that it will succeed. The European plan also calls for very strong controls toavoid the financial sector making the same mistakes.