G20 accord: you go your way, I'll go mine

[CHIMO]

Born out of necessity in the dark days of late 2008, the cracks are beginning to show in the G20. Developed and developing nations were united when confronted with the collapse of world trade and the shrivelling of industrial output but are finding it harder to keep the show on the road now that the immediate crisis is over.

The communique from the weekend's meeting is easily summed up: do your own thing. The Americans cannot persuade the Europeans to hold off from fiscal tightening until the recovery is assured; the Germans and the British think the risks of a sovereign debt crisis are far more serious than the possibility of a double-dip recession.

That was not the only contentious issue this weekend. Canada, Australia, China, India and Japan were unhappy with the idea that their banks – which proved resilient during the financial crisis – should have to pay the levy backed by Washington, Berlin, Paris and London. Again, it was a case of go your own way.

Cause of friction

Meanwhile, the summit danced around a long-standing cause of friction; China's unwillingness to allow its currency – the yuan – to appreciate to a level that might help reduce its trade surplus with the US.
http://www.guardian.co.uk/world/2010/jun/28/g20-summit-economics-global-imbalances