Brown and the Billions

So, while Gordon Brown prepares to inject a fresh load of cash into Northern Rock in a bid to increase lending in the UK, he also dashed over to Berlin to meet G20 leaders.

The Big Deals – Germany, France, Britain, the Netherlands, Spain and Italy – met to discuss common targets ahead of the next G20 meeting on 2nd April, to be held in London.  One major announcement out of the talks is the new IMF fund to be set up in order to boost the Eurozone – and at $500bn it’s apparently still not large enough, according to Brown.

In general, the country leaders tried to come to some agreed outlook on ways of tacking the crisis.  It is at times like these, when countries are dealing with a negative influence, that issues can become highlighted.  One that has had many divided is the success of the Euro.  Does a situation like this highlight problems in a shared currency, and are there elements of it that might make some decide to pull out in the years to come?  Would it be more trouble to start afresh outside of the Zone?

These are interesting topics for discussion and theory, but perhaps it is too early to give it more than hyperthetical thought.  Yes, there has been increased strain on stronger countries – Germany in particular – out of a shared interest rate, and the possibility for bailing out weaker countries, but in actual fact the currency as a whole has been a success.  What happens in the next couple of years is going to be interesting to say the least.

So while Gordon has a lot on his plate in the immediate surroundings, and seems yet more willing to inject cash into the UK, he will have his work cut out at next the G20 summit, of which he will be the Chair.

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