The decision-making process of the European Union is seldom a pretty sight. Yet slowly and rather clumsily, the 27 member states are getting their act together for a co-ordinated position at the Group of 20 summit on the global economic crisis on April 2.

Inevitably it is a trade-off between those who want more fiscal stimulus and those seeking more regulation to restore confidence in financial markets. Germany remains the most hesitant about further boosting government spending before the full effect of existing stimulus packages is clear – and most enthusiastic about tougher regulation. The UK is cautious on regulation. They have fortunately found a way to compromise.