World leaders scramble to forge consensus at G-20 crisis meet

The G-20 summit to address the ailing global economy got underway today with India pitching for stronger regulation and improved supervision of the financial system to prevent a repeat of the current crisis.

Leaders of the world's top 20 rich and emerging economies, including Prime Minister Manmohan Singh, held a brainstorming session to chalk out urgent regulatory measures to address the alarming situation.

Setting the tone for the summit, Singh made it clear that industrialised nations should not repeat past mistakes of resorting to protectionism.

"A global crisis requires global solutions," he said at the official dinner hosted by British Prime Minister Gordon Brown for the G-20 leaders here last night.

US President Barack Obama, who is on his first visit to Britain, asked the G-20 leaders to help cope with the economic meltdown, saying "we can only meet this challenge together."

Obama pushed hard for consensus to deal with the problem. "I am absolutely confident that this meeting will reflect enormous consensus about the need to work in concert" to tackle the crisis, he said ahead of the meet.

The leaders held hard negotiations on evolving a new deal to overcome the economic crisis and narrow down divisions on the nature of a tougher financial regulation.

France and Germany called for stricter regulation of the financial system while the US and UK believed that extra government spending would do more to ease the crisis.

The summit discussed measures to regulate financial markets, putting a check on fat corporate salaries and a clampdown on tax havens.

Differences persisted on drawing up a new rule book for international finance and stimulus measures besides combating protectionism, British Business Secretary Peter Mandelson said.

Extra efforts to boost economic growth are expected to be pledged at the day-long summit, which is taking place at the ExCel centre in the city's Docklands district, but specific targets on government spending look unlikely.

Singh and other G-20 leaders began the day with a working breakfast hosted by Brown and then went into the plenary session of the summit.

Police have arrested nearly 90 people following demonstrations in the city against job cuts and recession. One person died during protests yesterday in London's financial district.