G8 summit: Leaders to tackle eurozone threat

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The G8 have a working dinner last night. Photo: Press Association

World leaders resume their meetings this morning at Camp David.

The G8 brings together the most powerful leaders for wide ranging and informal talks.

This year the summit is at the Presidential retreat that nestles in the Catoctin Mountains of Maryland.

One issue will dominate: How to stabilize the world's economy.

The Eurozone crisis threatens everyone. It cannot be contained to Southern Europe. The G8 debate will be animated because the stakes are so high and because there is no agreement on the solution.

Should Europe try to stimulate its way out of trouble, like America did with its $862 billion effort in 2009?

Or should it adopt the German approach of caution and belt-tightening, believing public spending is the problem not the solution?

Cameron will be pitched against Hollande. Obama against Merkel. It's an economIc debate that has raged for 70 years.

Camp David has seen some dramatic diplomacy before, including Middle East peace-making. This time there will be no decisions and no consensus.

But the rustic cabins of the Presidential retreat will witness a debate that is roiling Europe and which have an impact on all of us.