The G8 Summit... Progrowth versus Proausterity?

The G8 summit at Camp David presidential retreat in the U.S. is set to be a clash of ideas on how to resuscitate western economies from the slump which is proving to be problematic in economic, political and social spheres. Already several governments have changed hands in Europe as a result of the crisis. The Euro's existence is now under a renewed strain because of Greek troubles. With a looming bitter fight for the presidency in the U.S. this year between Barack Obama and presumably Mitt Romney, the decisions at the G8 summit are going to be very calculated to achieve a win-win solution for the various actors.

With Obama and Hollande already for progrowth policies, the stage has been set for a battle between progrowth and proausterity policies with Germany's Angela Merkel leading the proausterity group. With Sarkozy's ousta, Merkel enters the scene severely wounded, playing her cards carefully knowing any bad decisions by her will ensure her path to oblivion just as Sarkozy. We can see that she is already softening on Greece, which is evident that she is losing control of the situation. The problem with the western world is that it is putting an ideological war in front of everything else mainly via policy entreprenuership without regards to how their problems can be solved organically. 'Credibility' has preoccupied their minds and this 'credibility' isn't collerated to a correct problem-solution but rather an 'erotic' connection of their minds which has nothing to do with finding an optimum strategy. Those in the progrowth camp are mainly agitating for expansionary policies. With austerity having failed to achieve desired results, the electorates in most of these western countries are now key in turning the tables in favour of progrowth policies. Let's hope the G8 summit will produce better results.