Monday, March 2, 2009

No EU bailout for Eastern Europe

Angela Merkel rejected a EU bailout for troubled Easte European economies, see here and here.
Ms. Merkel said she couldn't see the need for a broad grant of aid to Eastern Europe. "The situation is very different" in Europe's economies. "We cannot compare Slovakia nor Slovenia with Hungary," she told reporters.

This came after the warning about a new Iron Curtain:

Hungarian Prime Minister Ferenc Gyurcsany, who proposed a bailout package of up to €190 billion ($240.84 billion), warned that without aid a "new Iron Curtain" would descend on Europe and again separate East from West.

This is a problem. If the EU cannot cooperate on helping themselves there is not much hope for the G-20 summit. It seems everybody wants to go it on their own.

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