Sunday, 1 March 2009

This meeting was always going to be a demonstration of solidarity 
amongst the eastern countries to prevent a 'ganging-up' by the big-
boys to the west.  there was never any prospect of any actual hard 
decisions.

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EU OBSERVER    1.3.09  at 1413 hrs (1313 GMT)
New member states call for EU solidarity
HONOR MAHONY


  BRUSSELS - Central and eastern European countries have called for 
solidarity among member states, as several western states look to 
national solutions to get themselves out of the current economic crisis.

The gathering of nine member states, who all joined the bloc after 
2004, also offered their public suport to the European Commission to 
uphold the principles of the internal market and fight against 
protectionism.


Their message came just before all 27 member states gather in 
Brussels on Sunday afternoon (1 March) to talk about forging an EU 
response to the crisis, which has been notable for the public 
friction it has caused between national governments.

Polish prime minister Donald Tusk, who chaired the mini meeting, said 
the EU as a whole should show "universal solidarity, more 
responsibility and more optimism."

He called on all member states to adhere to the "rules and 
principles" enshrined in the EU treaties, referring to upholding 
basic internal market rules and said the "temptation of 
protectionism" should be avoided.

The European Commission, which is currently examining plans by six 
member states to aid their car industries to see if they breach the 
bloc's strict state aid rules, welcomed their support.
"It is very important that in times of difficulty all countries of 
Europe are working together," said commission presisdent Jose Manuel 
Barroso.
"We need to do things in the spirit of true solidarity," he added 
noting that he had seen "great commitment to Europe" from the region.

The newer member states have been alarmed by signs that richer member 
states intend to try and buy their way out of the crisis, an option 
not open to central and eastern countries.

They have been calling for an EU response as a way of avoiding this 
trend, which could lead to a run towards economic nationalism.

France prompted the talk of protectionism with its plans to give 6bn 
euros to its two major car-makers - a package that the European 
Commission has just indicated it will accept. French president 
Nicolas Sarkozy is expected to ask for an EU-wide car package at the 
summit later today, something which Germany is strongly opposed to.

Meanwhile, solidarity among member states is in short supply as 
several countries grapple with the effects of the crisis and angry 
citizens.

Some eastern states - including Hungary, Poland and Bulgaria - 
feeling the cold of being outside the 16-nation eurozone, have asked 
that the rules for entering the single currency be speeded up.

But this has already been rebuffed by Luxembourg prime minister Jean-
Claude Juncker, in charge of the eurozone, who on arriving to the 
Brussels summit said: "I don't think that we can change the accession 
criteria overnight. This is not feasible."

Currently the rules stipluate that countries have to remain in the 
euro waiting room for two years after meeting strict defict and 
exchange rate criteria.

Poland's Europe minister Mikolaj Dowgielewicz said that one of the 
reasons of the Sunday morning's mini summit was stop there being a "a 
plan for the west and a plan for the rest."

He pointed to the issue of bailing out banks saying that eastern 
European member states, most of whom are outside the single currency, 
are worried that bailouts will be agreed only for eurozone banks and 
not for the rest.

The meeting of EU leaders - a three-hour lunch - is expected to try 
and agree a common statement on how to respond to the crisis. A draft 
of the statement talks about "building confidence and promoting 
financial stability" as well as making the "maximum possible use of 
the single market."