EU, China unlikely to support stimulus at G-20 summit

Updated

If the G-20 can agree on better regulations for derivatives and risk transparency, and issue a statement against protectionism, that would be enough to call the upcoming summit this week in London a qualified success.

The modesty of this fairly limited set of goals is driven by the current divide between the US and the UK on one hand, and the rest of Europe on the other. The essence of that divide? The United States and the United Kingdom would like the European Union and other key G-20 members to pass another round of fiscal stimulus. The E.U., however, shows little inclination to commit to another stimulus, at least not immediately.

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