BRUSSELS, Mar 1 (Xinhua): European Union leaders meet today for emergency talks as the economic crisis places strains on two key tenants of EU policy-open trade within the 27 nation bloc and solidarity between its rich and poor members.
The summit was called by Czech Prime Minister Mirek Topolanek, whose country's debut EU presidency comes as the bloc struggles to cope with the worst economic crisis in decades. The afternoon meeting is designed to forge a united European position ahead of the summit of leaders from the G-20 group of leading economic powers scheduled for April 2 in London.
Topolanek wants his counterparts from the other EU nations to commit to maintain open markets and reject growing calls for protectionist measures to defend domestic industry in the face of the world economic slump.
"European integrity and solidarity are now undergoing a severe trial," Topolanek wrote in Friday's Financial Times. "A system of subsidies and illegitimate loans will not bear the much-desired fruit, but rather grapes of wrath."
The Czechs have been particularly incensed by French plans to offer public aid to carmakers Renault and Peugeot-Citroen on condition that they commit to not laying off French workers-a condition seen as threatening jobs of workers in factories owned by the French automakers in Eastern Europe.
French President Nicolas Sarkozy added to easterners' concern with recent televised comments that appeared to directly criticize the French companies for investing in the Czech Republic and other nations where costs are lower than in France.
Topolanek hopes the summit will restate governments' commitments to core values including the single European market and economic solidarity.
Leaders are also expected to consider practical measures such as increased financial sector regulation and common standards for dealing with "toxic" bank assets, although firm decision are unlikely until the union's next regular summit on March 19.
All European nations have been hit by the economic crisis with the bloc's economy as a whole scheduled to contract by 1.8 percent this year, unemployment rising to 7.6 percent, the highest level in over two years.
For weeks, news bulletins across Europe have been opening with stories of the latest lay offs or high-profile bankruptcies. To stimulate activity and slow job losses, EU leaders are pumping nearly 500 billion euros (about 632.2 billion U.S. dollars), or 3. 3 percent of the bloc's gross domestic product, into the economy, on top of the 300 billion euros used to recapitulate banks to avoid a financial meltdown and 2.5 trillion euros in guarantees to encourage interbank lending.
EU leaders hold economic crisis talks
FE Team | Published: March 02, 2009 00:00:00 | Updated: February 01, 2018 00:00:00
Share if you like