Coordination problem in G7 will lead to market uncertainty

While the world looks to the G7, there is not consensus on what should be the appropriate action or level of coordination. The statements below suggest that there may not be a singular view on what should be done and when. This is the not the first time that the G7 could not agree on coordinated action. generally, the G7 has not been able to cause a change in unilateral policies within the G7 or across other countries.


"We must continue to closely coordinate our actions and work within a common framework so that the action of one country does not come at the expense of others or the stability of the system as a whole," said Treasury Secretary Paulsen

French Economy Minister Christine Lagarde said, "What is important is to reach an agreement on common principles."

Britain's Chancellor of the Exchequer, Alistair Darling, said governments needed to "move on from simply agreeing on a general approach. Markets and people the world over will be looking for a clear sign that governments of the largest economies in particular are prepared to act - they are prepared to take firm measures that will make a difference,"

We will have to coordinate internationally, but beyond that there should be room for nation-specific solutions," German Finance Minister Peer Steinbrueck said."What Great Britain has been doing is one approach, but that does not mean that it should be transferred to any other country."