Sarkozy's red lines for a G-20 summit deal
| London
French President Nicolas Sarkozy came out swinging Wednesday morning. He threatened to walk out of the G-20 Summit in London.
But by late afternoon, Mr. Sarkozy was making nice.
鈥淚 have confidence in Obama,鈥� and, 鈥淚 am sure that he will help us and that he will understand us,鈥� he said at a joint press conference with German Chancellor Angela Merkel Wednesday.
Mrs. Merkel said both leaders had come 鈥渋n a very constructive mood.鈥�
As for walking out, Sarkozy said 鈥渋t would be annoying to leave when I have just arrived.鈥�
But that doesn鈥檛 mean France and Germany have completely backed down.
Sarkozy has produced a number of 鈥榯ests鈥� which he insists must be met.
Sarkozy's red lines
For starters, tighter financial regulation of banks was 鈥渁 non-negotiable goal鈥� that has to be met, he warned Wednesday.
Action on executive bonuses, hedge funds, rating agencies, and offshore tax havens were all also identified as "red lines" for France, as well as Germany.
Click here to read about Germany taking a tough line on Swiss tax havens.
But is there really a Franco-Germany initiative to hijack the G-20, enlisting he support of nations such as Brazil to prize the agenda away from President Barack Obama and Prime Minister Gordon Brown?
Sarkozy held a joint press conference with Brazil鈥檚 President Luiz Inacio Lula da Silva earlier on Wednesday. Sarkozy said that he and Lula shared 鈥渋dentical鈥� views.
Setting the bar low
Still, some observers suggest that Sarkozy has deliberately set the bar at a level which can be met by Obama and Brown, giving credence to the British Prime Minister鈥檚 prediction that an agreement deal on a plan to kick start global recovery was just 鈥渉ours away鈥�
In some quarters, there are suspicions that Franco-German maneuvering has more to do with impressing domestic electorates, particularly in France.
But Merkel and Sarkozy are also continuing to dig their heels in on plans for a fiscal stimulus packages to pull the world economy out of the current crisis.
Why is Merkel saying "nein" to stimulus spending? Click here.
"France and Germany will speak with a single voice ... Compromise must be engaged in by all partners of the world," Sarkozy said at Wednesday鈥檚 press conference.
鈥淲e will see tomorrow exactly what the outcome of this will be. We will judge then,鈥� said Sarkozy.
Stay tuned.
