I'd listened carefully when European leaders called last month for concerted efforts to boost regulation of financial markets. I've been listening to European views of last weekend's G20 summit in Washington on this point.

The lame-duck Bush administration and fascination with President-elect Obama seems to have tempered the interest of mainstream Americans –or at least mainstream American media– for international regulatory issues.

From the conversations that I've been having with Europeans, I take away three big points:
  1. There seems to be a transatlantic consensus on government stimulus measures. This is noncontroversial, notwithstanding the magnitude of programs under discussion or their likely aggravation of deficits.
  2. European calls for regulation have, for the past month, been vocal, and Europeans believe that these calls were renewed last weekend.  I sense hesitancy and uncertainty on what the politically desired regulatory changes would involve. Sometimes, the objective seems to be harmonization. But other voices, especially from France and Germany, have been calling for entirely new regulatory schemes, covering for example hedge fund activities or executive compensation caps. It's hard to tell whether the latter proposals are for domestic political consumption or are seriously intended as proposals for international action. 
  3. Restarting trade talks has become increasingly important. The difficulties in making progress have not diminished, but there seems to be a new sense of urgency to regain momentum and show a commitment to talking through very difficult sticking points. More is involved than simply warning against protectionism. My sense is that Americans are behind the curve on trade liberalization.