Revenant
02-10-2009, 05:21 PM
BRUSSELS (AFP) - EU finance ministers on Tuesday urged coordinated action to tackle the economic crisis, against a backdrop of increasing criticism over French "protectionist" moves in its auto sector.
With Europe in a growing recession the ministers agreed to work together on ways to deal with their banks' "toxic assets" which are hampering lending.
They also looked at the progress of a 200-billion euro (260-billion dollar) stimulus package designed to kickstart their ailing economies.
Overall the cry went out to avoid the temptation of protectionism at all costs.
"Our ambition is to ensure that at the highest levels there should be a clear 'no' to protectionism," said Czech Finance Minister Miroslav Kalousek, whose country holds the EU's rotating presidency.
He didn't mention France by name but the European Union's top competition regulator expressed concern Tuesday about France's plan to bolster its auto industry, which has also drawn fire from the Czechs and German industry.
On Monday, President Nicolas Sarkozy announced state loans of almost eight billion euros (10.4 billion dollars) for French car makers, in exchange for pledges to keep jobs and assembly lines in France.
A spokesman for the European Commission, which vets state aid in the 27-member bloc, suggested the plan might contravene EU laws by obliging French car makers to keep their plants in France in exchange for government funds.
Sarkozy has riled the Czechs in particular by suggesting that car manufacturing by French companies in countries such as the Czech Republic should be relocated to France to create jobs there in the economic downturn.
The German industrial federation BDI also expressed alarm at the French automobile sector aid plan.
"A policy of subsidies for national manufacturers will lead to distorted competition that we must not allow in Europe," a BDI statement said.
Slovak Prime Minister Robert Fico went further, threatening to send French gas company GDF Suez "home" if France goes ahead with its protectionist statements amid the economic downturn.
EU leaders will meet informally late this month in an effort to tackle protectionist tendencies.
Sarkozy on Tuesday sought to mend fences with another European leader, telling British Prime Minister Gordon Brown that he "deplored" the way comments he made on the British economy had been reported.
Sarkozy's statement did not directly address his previous remarks, in which he tried to explain why France was seeking an investment-led recovery rather than following Britain in trying to stimulate consumer demand.
In Prague, Czech Prime Minister Mirek Topolanek slammed eurozone countries in general for steps they have taken to cushion the impact of the global crisis.
Most euro countries "started breaking the common rules by their declarations as well as by practical steps, while the basic anchor of the whole process is to adhere to these common rules," he said.
The Czechs have called for stringent fiscal discipline since the EU agreed a 200-billion-euro economic stimulus plan last December, saying the measure would blow up budget deficits beyond limits set by the EU's Stability and Growth Pact.
The EU finance ministers did reach broad agreement to coordinate their approach to "toxic assets" held by banks in order to promote lending, while saying there was no one-size-fits-all solution.
The European Commission was tasked with drafting concrete proposals in two weeks or so, but it is already agreed that individual member states may decide whether to set up a "bad bank" to assume the impaired assets, offer a government guarantee on them to boost the banks or some hybrid scheme.
http://au.biz.yahoo.com/090210/33/24izz.html
What timing, Bravo.
That Sarko is quite the character.
With Europe in a growing recession the ministers agreed to work together on ways to deal with their banks' "toxic assets" which are hampering lending.
They also looked at the progress of a 200-billion euro (260-billion dollar) stimulus package designed to kickstart their ailing economies.
Overall the cry went out to avoid the temptation of protectionism at all costs.
"Our ambition is to ensure that at the highest levels there should be a clear 'no' to protectionism," said Czech Finance Minister Miroslav Kalousek, whose country holds the EU's rotating presidency.
He didn't mention France by name but the European Union's top competition regulator expressed concern Tuesday about France's plan to bolster its auto industry, which has also drawn fire from the Czechs and German industry.
On Monday, President Nicolas Sarkozy announced state loans of almost eight billion euros (10.4 billion dollars) for French car makers, in exchange for pledges to keep jobs and assembly lines in France.
A spokesman for the European Commission, which vets state aid in the 27-member bloc, suggested the plan might contravene EU laws by obliging French car makers to keep their plants in France in exchange for government funds.
Sarkozy has riled the Czechs in particular by suggesting that car manufacturing by French companies in countries such as the Czech Republic should be relocated to France to create jobs there in the economic downturn.
The German industrial federation BDI also expressed alarm at the French automobile sector aid plan.
"A policy of subsidies for national manufacturers will lead to distorted competition that we must not allow in Europe," a BDI statement said.
Slovak Prime Minister Robert Fico went further, threatening to send French gas company GDF Suez "home" if France goes ahead with its protectionist statements amid the economic downturn.
EU leaders will meet informally late this month in an effort to tackle protectionist tendencies.
Sarkozy on Tuesday sought to mend fences with another European leader, telling British Prime Minister Gordon Brown that he "deplored" the way comments he made on the British economy had been reported.
Sarkozy's statement did not directly address his previous remarks, in which he tried to explain why France was seeking an investment-led recovery rather than following Britain in trying to stimulate consumer demand.
In Prague, Czech Prime Minister Mirek Topolanek slammed eurozone countries in general for steps they have taken to cushion the impact of the global crisis.
Most euro countries "started breaking the common rules by their declarations as well as by practical steps, while the basic anchor of the whole process is to adhere to these common rules," he said.
The Czechs have called for stringent fiscal discipline since the EU agreed a 200-billion-euro economic stimulus plan last December, saying the measure would blow up budget deficits beyond limits set by the EU's Stability and Growth Pact.
The EU finance ministers did reach broad agreement to coordinate their approach to "toxic assets" held by banks in order to promote lending, while saying there was no one-size-fits-all solution.
The European Commission was tasked with drafting concrete proposals in two weeks or so, but it is already agreed that individual member states may decide whether to set up a "bad bank" to assume the impaired assets, offer a government guarantee on them to boost the banks or some hybrid scheme.
http://au.biz.yahoo.com/090210/33/24izz.html
What timing, Bravo.
That Sarko is quite the character.