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EU 'consensus' to tackle crisis EU 'consensus' to tackle crisis
(40 minutes later)
EU leaders meeting at an emergency summit in Brussels say they are determined to avoid protectionist moves in response to the economic crisis.EU leaders meeting at an emergency summit in Brussels say they are determined to avoid protectionist moves in response to the economic crisis.
"There was consensus on the need to avoid any unilateral protectionist measures," European Commission president Jose Manuel Barroso said."There was consensus on the need to avoid any unilateral protectionist measures," European Commission president Jose Manuel Barroso said.
He spoke at the end of the summit aimed at heading off a new east-west rift.He spoke at the end of the summit aimed at heading off a new east-west rift.
The meeting followed the French president's pledge to help his nation's car industry if jobs were safeguarded. Hungary earlier called for a 180bn-euro (£160bn) aid package for Central and Eastern Europe - but that was rejected.
Germany's Chancellor Angela Merkel said the former communist countries - the newest EU member states - were not all in the same situation.
The summit followed the French president's pledge to help his nation's car industry if jobs were safeguarded in France. Bold global action, a global grand bargain, is not now just necessary but it is vitally urgent UK Prime Minister Gordon Brown Send us your comments
President Nicolas Sarkozy's move raised fears that national protectionism could scupper hopes of recovery within the EU. The Czech Republic, current holder of the EU presidency, condemned his comments.President Nicolas Sarkozy's move raised fears that national protectionism could scupper hopes of recovery within the EU. The Czech Republic, current holder of the EU presidency, condemned his comments.
UK Prime Minister Gordon Brown said "today was the start of a European consensus on all these major issues that are facing the world community", including "no to protectionism".UK Prime Minister Gordon Brown said "today was the start of a European consensus on all these major issues that are facing the world community", including "no to protectionism".
We face the threat of a retreat into protectionism UK Prime Minister Gordon Brown Send us your comments
After chairing the talks on Sunday, Czech Prime Minister Mirek Topolanek said: "We need a Europe without barriers but also a just and fair Europe."After chairing the talks on Sunday, Czech Prime Minister Mirek Topolanek said: "We need a Europe without barriers but also a just and fair Europe."
He also said US President Barack Obama would visit Prague on 5 April. "I think that it was perfectly clear that the European Union isn't going to leave anybody in the lurch," he told a news conference. Protectionism... flies in the face of the whole raison d'etre of the EU BBC Europe Editor Mark Mardell class="" href="http://www.bbc.co.uk/blogs/thereporters/markmardell/">Blog: French climbdown?
But there was no announcement of any new EU aid package for the badly-hit economies of Central and Eastern Europe.But there was no announcement of any new EU aid package for the badly-hit economies of Central and Eastern Europe.
Mr Topolanek also said US President Barack Obama would visit Prague on 5 April.
East-west differences
Hungary's Prime Minister, Ferenc Gyurcsany, warned earlier against allowing a "new Iron Curtain" to divide the continent.Hungary's Prime Minister, Ferenc Gyurcsany, warned earlier against allowing a "new Iron Curtain" to divide the continent.
Protectionism... flies in the face of the whole raison d'etre of the EU BBC Europe Editor Mark Mardell Blog: French climbdown?
Many of the newer EU members in Central and Eastern Europe have seen their financial institutions and economies battered by the downturn. They are faced with plunging currencies, factory closures and in some cases social unrest.Many of the newer EU members in Central and Eastern Europe have seen their financial institutions and economies battered by the downturn. They are faced with plunging currencies, factory closures and in some cases social unrest.
Hungary and Latvia especially are facing serious liquidity problems. They are already receiving billions of euros from an EU emergency fund.Hungary and Latvia especially are facing serious liquidity problems. They are already receiving billions of euros from an EU emergency fund.
Hungary called for a 180bn-euro (£160bn) aid package for Central and Eastern Europe - but that was rejected by Germany's Chancellor Angela Merkel. European Commission President Jose Manuel Barroso said agreement was reached on a framework for dealing with the toxic assets on bank balance sheets that have crippled lending.
Alluring euro He stressed that the EU was putting substantial funding into Central and Eastern Europe. He said 7bn euros of structural funds would go to the new member states his year, including 2.5bn for Poland.
Mr Gyurcsany suggested a relaxation of the rules for adopting the euro. But the chairman of the 16-nation eurozone group, Luxembourg Prime Minister Jean-Claude Juncker, said: "I don't think we can change the accession criteria to the euro overnight." Another 8.5bn euros from the European Investment Bank would help small and medium-sized firms in the region this year, he said.
The summit, called by the Czech Republic, came just a week after the same EU leaders met to discuss reforming the region's financial system.The summit, called by the Czech Republic, came just a week after the same EU leaders met to discuss reforming the region's financial system.
President Sarkozy denied accusations of protectionism levied at his 3bn-euro bail-out plan, which aims to keep French carmakers manufacturing in France.President Sarkozy denied accusations of protectionism levied at his 3bn-euro bail-out plan, which aims to keep French carmakers manufacturing in France.
However, he said that if the US defended its own industries, perhaps Europe should do the same.However, he said that if the US defended its own industries, perhaps Europe should do the same.
Czechs urge solidarity Prime Minister Brown - who will become the first European leader to hold talks with President Obama this week - said the G20 talks next month represented an opportunity to agree "a new deal".
"We do not want any new dividing lines. We do not want a Europe divided along a North-South or an East-West line," Mr Topolanek said ahead of Sunday's summit.
"Efforts and measures to fight the economic crisis within the EU must respect the principle of solidarity, but they also require that all players show responsibility," Mr Topolanek said.
Mr Brown, who travels to Washington this week, where he will become the first European leader to meet US President Barack Obama, said the G20 talks next month represented an opportunity to agree "a new deal".
"Only by working together will we deliver the EU and international recovery we need.""Only by working together will we deliver the EU and international recovery we need."