President Obama vs. the G20

IT was probably foolhardy to pin too many hopes on the London summit of the 20 largest economies. The leaders come to the meeting with ideas and experiences too different to reach agreement on how to tackle the world economic crisis.

Most notably, France and Germany dislike the federal stimulus plan passed last month by the U.S. Congress. Their opposition sounds hypocritical. Nearly every country in attendance, 17 of the 20, has a fiscal stimulus plan.

French President Nicolas Sarkozy initially threatened to walk out of Thursday's meetings if there wasn't widespread agreement on strengthening international regulations. He and Germany's prime minister, Angela Merkel, have long called for tougher regulations on hedge funds and tax havens. President Obama should resist the efforts, including a plan to create a global regulatory agency — an idea pushed by France. It is a matter of sovereignty. The U.S. should be leery of putting itself under the rule of an international bureaucracy.

Those who blame the U.S. for the current global economic crisis hope to use the G20 summit as an opportunity to obtain changes not in our interests. The question is not who is to blame but how will we all get out of this mess.

Concern over deficit spending is warranted. Equally worrisome are protectionist trade policies nearly every country, including the U.S., flocked to since economies went south. The federal stimulus included a "Buy American" provision for steel and iron used in public-works projects. While the strident language was weakened so as not to run afoul of international trade pacts, it will prove not to have been our finest moment.

But rather than accentuate differences, Obama is right to urge leaders to focus on finding common ground. That will be a difficult enough task.

There isn't united agreement over how to tackle the economic crisis. A sign of the angst came while thousands of protesters jammed London's financial district, smashing windows of a bank and protesting international monetary policies. The frustration is understood but protest signs that read "Kill the bankers" are absurd.

The economy eclipsed other important aspects of the summit, including one-on-one meetings with the leaders of China and Russia and the latter country's agreement with the U.S. on a new nuclear weapons treaty to replace one outdated by 20 years. Obama has said the biggest threat facing the U.S. is nuclear weapons in the hands of terrorists.

But the global economy is clearly taking precedence. To that end, Obama must continue to resist the combative tones and theatrics of the French. He must push forcefully toward united agreement on an economic strategy. The U.S. can help resolve this mess but all the nations have to join in.