Doubts surface over G20 rescue plan

Doubts are growing over the chances of success of the Washington summit on world finances. The G20 agreed to reform and relaunch the global economy, while admitting there is no quick fix. Britain remains optimistic, but critics fear Prime Minister Gordon Brown and his co-leaders do not have all the answers.

“We agreed on the need for major reform of the international financial system,” said Brown. “And it is necessary to give confidence that we are cleaning up the system, based on the principles of transparency and accountability, better regulation, integrity and international co-operation.”

All leaders accept that urgent action is needed if the world is to avoid recession, or worse, depression. They have demanded concrete proposals from their finance experts by the end of March next year, which will include greater regulation of world markets to prevent similar crises in the future.

“We all agreed on the urgent need for co-ordinated and concentrated action to re-start the world economy,” said French President Nicolas Sarkozy.

The G20 will meet again in the spring, probably in London as Britain takes over the chair in 2009. Much may have changed by then, not least in America with George Bush gone, and Barack Obama facing the challenges posed by the world economic slump.

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