Economic crisis is dominating the headlines across the world. Nowhere more so than Britain, mainland Europe and the Untied States. Every Monday morning the politicians wait with great anxiety and bated breath as the market bell tolls. But, as the politicians look towards the sea of red on the stock markets I cannot help but wonder whether the politicians should be looking at themselves a bit harder.
The list of summits, crisis meetings, emergency talks and super committees is growing ever longer and the more the politicians meet and talk, the deeper the crisis seems to get. I am not an economist, but this cyclical process of the politicians watching the markets and the markets reacting to the (lack of) action from the politicians appears to be just simply exacerbating the crisis.
The evidence from this can be seen from a number of recent events. When the EU leaders met at the end of October for a crisis summit on the Eurozone they failed to put together a comprehensive enough plan to satisfy the markets. In early November the much-hyped G20 Summit in Cannes was widely branded as a ‘failure’ with discussions between the world’s most politically powerful men and women resulting in further risks to the global economy. And most recently, the Super Committee of senior politicians in Washington sparked new market fears when it failed to reach an agreement about the US debt limit after months of discussions.
The Mayor of New York City, Michael Bloomberg attacked the politicians in the US; "Cowardice and partisanship in Washington is really hurting our country," he said. And this is the feeling across the globe – with tough rhetoric and the persistent summits of world leaders leading to little more than an expensive photo opportunity. Boldness and partnership is needed from our politicians across the globe, and it is needed fast.