The French President is threatening to walk out of the most important economic meeting in many years unless the members adopt his idea of increased financial regulation: President Sarkozy yesterday threatened to wreck the London summit if France’s demands for tougher financial regulation are not met. France will not accept a G20 that produces a “false success with language that sounds good but contains no commitments”, his advisers said. Asked if this meant a possible walk-out, Xavier Musca, Mr Sarkozy’s deputy chief of staff for economic affairs, said: “A basic rule with nuclear deterrence is that you do not say at what point you will use the weapon.” The French threat dramatically raised the temperature hours before President Obama arrives in London today. If carried through, it would ruin a summit for which Mr Brown and Mr Obama have high ambitions, believing it vital to international recovery. Mr Sarkozy, who blames the...(Read Full Post)