Today in Politics: The man who saved the world
By Andrew Grice in Brussels
Behind the leaders' smiles at the European Union summit in Brussels, there has been a barely-concealed squabble between Gordon Brown and Nicolas Sarkozy over who was the main architect of the EU's rescue plan for banks, key elements of which have been taken up by the United States.
Brown came to the meeting armed with his proposals for wide-ranging global reforms to prevent a financial crisis. But the French President, who is chairing the summit, then produced his own reform blueprint (which contains very similar ideas to Brown's). He recalled that he had proposed a "new Bretton Woods" agreement on the world's financial institutions in September and, at a late-night press conference, could not bring himself to mention Brown once. For his part, Brown pointed out that he had first proposed global finance reforms as long ago as... 1988.
It's all rather unseemly. The whole world knows that Brown got there first last week and the 15 eurozone countries caught up on Sunday. So Team Brown is pretty relaxed about Sarko's sulks.
Today Britain is trying to cool the row, so the EU maintains a united front in the face of the crisis. "This is not about politicians squabbling," said David Miliband, the Foreign Secretary. Brown has just paid tribute to Sarkozy, saying he chaired the summit with "a great deal of brilliance." Their jockeying to be the man who saved the world's financial system may prove to be academic. If the stock markets continue to fall, someone may have to save the world all over again.
Gordon Brown's leadership qualities have shone through quite impressively in the current global financial crisis. He is calm, cool and calculated as usual. Can you even imagine David Milliband, had he been crowned PM a few months ago, exuding similar qualities? Those who wished for the downfall of Mr Brown should now quietly go and hide their faces in shame.
Posted by: E Boakye | Thursday, 16 October 2008 at 02:10 PM
It is all rather irritating to hear them squabble over the non-existent glory. There was always a limited range of options for those who wanted to save capitalism from itself. Apart from tinkering with the bank rate (3 months too late) it amounts to a choice between bullying the bankers or bribing them to end what was virtually an investment strike. They chose the most expensive option imaginable, and it probably will not be enough. Socialising the losses at our expense is not acceptable. Politically it is even worse as we now have a new layer ofr government- the National Economic Council; whats all that about?
Posted by: Ian Martin | Thursday, 16 October 2008 at 02:30 PM
A bit early to say if either of them has saved anything just yet.
Posted by: dave | Thursday, 16 October 2008 at 02:40 PM
Er doesn't the tax payer who is bailing out these banks get some credit? No not really because they don't count do they? I mean they weren't asked if they agreed or even liked the idea. So where's the statesmanship in all this? I suppose it's just arrogance and the hope that it'll save Browns political future. Bet Cameraman is miffed.
Posted by: Alan,Warsaw | Thursday, 16 October 2008 at 03:12 PM
Would someone please explain to me what Brown has been doing for the last ten years? He was responsible for the regulatory authorities. He encouraged a debt fest with no thought as to the consequences. Now apparently he has saved the world. Don't make me laugh! He is the main culprit, the man to blame for this mess. The age of irresponsibility? The age of incompetence more like.
Posted by: Jeremy | Thursday, 16 October 2008 at 03:25 PM
Apparently according to one of Brown's advisers involved in the discussions with the banks it was neither Brown or Sarkozy's plan, the idea was actually laid out in the Poulson plan as one of the suggestions as to the way they could proceed. The idea was seized on in London and the rest is as they say 'history.' So the world should be thanking Poulson if anybody.Mind you it looks like the plan is not succeeding anyway, judging by the markets, who clearly have no faith in it.
Posted by: dave | Thursday, 16 October 2008 at 04:04 PM
Dave, do you mean Paulsen, wasn't Poulson the bent architect back in the 60s?
I cant see the plan working as we seem to move from a refusal to lend (fear of toxic debt) to refusal to borrow because the returns dont look promising. Whats left of the productive parts of the economy are much less profitable than the financial speculation.
Posted by: Ian Martin | Thursday, 16 October 2008 at 05:09 PM
Brown has been a disaster as he has been in charge of our economy for the last 11 years. He has encouraged greed and unaccountability. Brown has also manipulated employment and inflation figures and continues to be in denial about our fragile economy which is dependent on the property market. Our PM is no different from Bliar and his Weapons of Mass Destruction concoction.
Amy
Posted by: amy | Thursday, 16 October 2008 at 05:33 PM
Somebody Had To Go First
And War President General George Washington Bush The Second Did Not Have The Guts
GGWBII Has Set The Double Brown Scotch Git Banker Up For Supersizing
The Shakedown Has Begun
The Tallyman Will Be On His Way To Card The Names With The Bottom Line Soon
The Uncle Sam Federal Reserve Is Preparing To Supersize The EuromonsterStateBankers*Bank Worthless Asset Holdings
And Shanghai Billy Says There Is An Even Money Chance That The £ Pound Will Dissappear From The Global Currantsea Markets Altogether
Even Though Eurowedalotofmoneyan*a**thatM8*
Posted by: Aimi MacDonald | Thursday, 16 October 2008 at 06:15 PM
Saved the world? Very funny. The International Bankers are laughing all the way to the bank! All their bad loans have now been transferred to Joe Public who has no idea what is going on. Furthermore we hear more talk about "global regulation". This is code language for more centralisation and control. Eventually this means a global currency, one set of interest rates and a world government. All long term goals of the International Bankers.
It is no coincidence that Mandelson has come back into the fold. He is close to the Rothschild family, the richest and most influential of the large banking families.
What we need is real monetary reform. A complete reform of the money system. The Bromsgrove Group has some good ideas. So do the Money Masters people. You can watch The Money Masters DVD on Google.
Posted by: scousekraut | Thursday, 16 October 2008 at 08:38 PM
If anything, both have contributed significantly, in the very recent past, to create an incredible mess in our world which my children will be paying for for years to come.
As for any contribution to mitigate some of the unbearable pain of this catastrophe, it is, as the other guy said too early to tell if the contribution works or adds to the future tax burden without palliating anything.
So, waht's in a name Sarko or Gordon?
Posted by: Mohamed MALLECK | Thursday, 16 October 2008 at 09:52 PM
It seems like many are forgetting that most of the 'solution' came from experiences proven right in Japan and Sweden in the 90's. Brown was simply the first to do it in this downturn, and there would have been no chance of it working if only one of the countries coming with the solution had tried. In other words, it doesn't matter which of Brown or Sarkozy proposed it now, it was not invented ny either of them...
Posted by: David Hune | Thursday, 16 October 2008 at 10:13 PM
Good old England!
Posted by: Terry Fidler-Dennis | Thursday, 16 October 2008 at 11:11 PM
The Paulson plan ? look at here it's funny.
http://macro-man.blogspot.com/2008/10/mystery-of-stolen-plans_13.html
"The Mystery of the Stolen Plans"
Posted by: KNG | Friday, 17 October 2008 at 06:25 AM
Alan Warsaw is correct.
The UK tax payer is the real hero. Yet we will be the victims yet again in the bail out of the economy as thousands are wiped off of pensions and for many that is already a paltry figure. Yeah well done Gordon. You've managed to **** us all and what do we get in return. (NOTHING)
Posted by: John Finningham | Friday, 24 October 2008 at 06:24 PM
Ladies and Gentlemen,
What exactly will happen if a new Bretton Woods agreeement is created? I realize this will take some time, not sure how much time it took for the first Bretton Woods agreement to take effect.
What will happen to the dollar, gold and silver,
Your thoughts please, Thank you in advance
Posted by: takashi bob | Tuesday, 28 October 2008 at 02:12 AM