Gordon Brown’s $1 trillion global rescue package unravels

Alistair Darling is scrambling to plug a gaping hole in the $1.1 trillion global rescue package agreed by G20 leaders in London — hailed at the time as Gordon Brown’s biggest success.

Some countries, led by Germany, are even calling for the bailout to be scaled back amid fears that it risks saddling economies with too much debt and could stoke inflation.

The breakdown of unity reflects the different speeds at which countries are emerging from recession and conflicting views about the outlook for the global economy.

The differences also extend to the kind of capitalism that leaders want to shape out of the global crisis. A serious disagreement will flare this weekend at a meeting in London of G20 finance ministers over whether to impose an international cap on bankers’ bonuses — a measure being pressed by France. Mr Darling believes that the proposal is unworkable and will table an alternative plan to tie bonuses to performance, The Times has been told.