World leaders: We can unite to defeat economic crisis

LONDON, England -- Leaders attending the G-20 summit in London Thursday said they were confident they could bridge their differences to unite on a plan to help address the economic crisis.There had been concerns that a rift was opening up between the approach being championed by the U.S. and Britain and that favored by France and Germany.The U.S. and Britain want countries to agree to more economic stimulus ahead of new rules for the banking system.France and Germany want the rules first -- and tougher ones than initially suggested -- and remain resistant to pumping more money into their economies.However, European Commission President Jose Manuel Barroso said he was confident about the result of the summit."There is a great degree of convergence," he told CNN Thursday morning.British Business Secretary Peter Mandelson was less upbeat, telling CNN there were some "strains" among the delegates."I hope very much that they will be ironed out and we'll come out with agreement at the end of the day.The leaders say they want to find ways to stabilize financial markets throughout the world and pull the world out of a deepening recession.They sat at the table Thursday for their first session with several targets in their sights, ncluding tax havens and protectionism.French Finance Minister Christine Lagarde called for a firm stand on tax havens.
Barroso backed her up.
"We have to be clear that those that want to keep shadow banking systems that are kind of underground (with) clandestine finances have to suffer sanctions, because it's once again a problem of confidence," Barroso said.
"We are for open economies and open markets, but open economies and open markets have to respect some rules.Britain will push for the same regulation of banks and financial institutions that operate in a "shadow banking world," Mandelson said. He said an international body should oversee the regulation.
Leaders will also be pushing for more fiscal stimulus.
British Prime Minister Gordon Brown is arguing for world leaders to maintain their investments and fiscal stimuli while also giving more money to institutions like the International Monetary Fund, Mandelson said.The IMF can then deliver those resources to poorer countries and emerging economies, he said."They are becoming major drivers of growth in the global economy," Mandelson said of those countries. "So we want a strong commitment, a hefty infusion of resources."Brown wants success on five points: restoring growth to emerging market economies; a "clean up" of the global banking system; commitment to encourage growth and help the poor; protectionism rejected and a push for investment in the environment.Barroso and Mandelson called for concrete commitments on the economy.Earlier this week French President Nicolas Sarkozy said that if the summit's final communique failed to contain strong language and clear steps, he may even walk out of the meeting.He and German Chancellor Angela Merkel said Wednesday they can accept debate and negotiation as long as firm steps are taken.