G20 Finance ministers upbeat

The world’s developed countries are determined to tackle the deepening global economic crisis, but they can’t agree on how this should be done.

This became evident yesterday, when G20 finance ministers, meeting in England, adjourned without issuing a clear statement of intent.

However both President Obama’s representative, Timothy Geithner, and Australia’s Treasurer, Wayne Swan,  emerged from the meeting, encouraged by it.

“The world is with us on this,’ Mr Geithner said.

“We will do what is necessary to get the economy moving again,” he added.

Mr Swan was also upbeat.

“It was a very encouraging outcome,” he said.

“I saw a resolve that I haven’t seen before,” Mr Swan said.

However Mr Swan admitted that “there are some reservations” about how the crisis should be tackled.

France and Germany, in particular, are making little secret of the fact that they are worried about rising government debt levels. They are arguing for tighter regulation of global financial markets.

Mr Swan said different circumstances in different countries might dictate different approaches to the crisis.

He warned, though, that the world must deal with the toxic assets, held by many banks, deliver fiscal stimulus and boost the International Monetary Fund, so that it can help less developed nations deal with the consequences of the crisis.

The Finance Ministers’ meeting was meant to pave the way for a G20 Leaders’ meeting, which President Obama, Kevin Rudd and other world leaders will attend, in London on April 2.