Tuesday, 10 March 2009

I separate this from the economic news because although it is sparked  
by the mounting crisis the implications are hugely political.

We note, for example, that the eurozone chief speaks for the EU  
although 40% of EU countries are not part of the eurozone oncluding  
Britain.  Britain, a global trading nation, has diametrically  
different views from the continental Europeans.  For example Germany,  
billed as the “world’s largest exporter” exports 60% to other EU  
countries.

I note that no British paper that I’ve yet seen has picked this  
spedch up.   Odd!
XXXXXXXXXXXX CS
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EU OBSERVER                    10.3.09
Crisis straining EU relations as 'never before', says UK foreign  
minister
    HONOR MAHONY    

The economic crisis is putting relations between EU member states  
under strain and testing the fundamentals of the European Union to an  
unprecedented extent, UK foreign secretary David Miliband has said.

"The sense of solidarity within Europe, between east and west, rich  
and poor, new and old is under strain," he said in a speech at the  
London School of Economics on Monday (9 March).

"The achievements of the last 30 years - from the single market and  
enlargement to the euro - are being tested as never before."

Mr Miliband, known for being strongly pro-European, also warned  
against a retreat in protectionism as a way of combating the global  
downturn, saying it would be a huge mistake and pleaded for more  
reform to keep Europe strong.

"Now is the time we need new reform to preserve the gains of the  
past. The truth is that the single market, enlargement and the  
creation of the euro have made Europe more effective not less," he said.

His comments come as there has been increasing talk of divisions  
between richer western EU nations and some of the poorer nations in  
the east.

Some of the newer member states, particularly Latvia, Hungary and  
Romania have been very badly hit by the crisis.

This has prompted calls for quicker accession to the eurozone [flatly  
refused -cs]  - as a way of protecting them from the credit crunch -  
and greater solidarity between EU nations.

The European Commission has often pointed out that it has responded  
to the crisis and released several billion euros early from its  
structural funds, most of which has gone to eastern member states.

But fears have remained that poor countries will be left to fend for  
themselves, a point highlighted when nine central and eastern member  
states held their own mini gathering ahead of a meeting of all member  
states on 1 March.

Officials from the countries said they wanted to make sure there was  
not a "plan for the west and a plan for the rest."

Hungarian Prime Minister Ferenc Gyurcsany, who called for a support  
fund for the region, stole headlines around Europe by warning that  
the economic crisis could lead to a "new iron curtain."

Since the 1 March summit, the rhetoric has been less inflammatory  
with all countries having signed up to a summit statement saying that  
protectionism is "no answer to the current crisis."

However, richer nations such as France and Germany have refused to be  
pushed into a quick decision on changing the rules for entering the  
eurozone and have also rejected any blanket rescue plan for the EU's  
newer member states.

"The temptation, given the severity of the economic crisis, is to  
turn inwards and focus on domestic problems ... but solidarity and  
support between nations is a vital part of the European compact,"  
said Mr Miliband.
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