EU countries urged to stay united amid economic crisis

Source: Xinhua | 03-05-2009 09:13

BRUSSELS, March 4 (Xinhua) -- The European Commission on Wednesday urged European Union (EU) member countries to better coordinate their individual responses to the current economic crisis.

In a communication to an EU summit later this month, the EU's executive arm set out proposals for building on the extensive support already being given to the real economy and to employment.

The EU summit "must send a strong signal to citizens, businesses and the world," Commission President Jose Manuel Barroso said. "Yes, there is a way out of this crisis. Yes, Europe has the unity, the confidence and the determination to win this battle."

The communication began with an overview of the measures taken since autumn 2008 which have prevented the meltdown of the European banking industry and thus prevented countless bankruptcies and job losses. It urged EU member states to act quickly to restore confidence and get bank lending flowing again.

Up to now, EU governments have spent billions of euros on financial bailouts and fiscal stimulus packages. The overall fiscal support to the economy from European and national measures and from automatic stabilizers amounted to at least 3.3 percent of gross domestic product (GDP) over the 2009-2010 period.

The commission called on EU leaders to endorse clear principles for further action, in line with the single market, with open trade worldwide, with building a low carbon economy and with returning to sustainable public finances as soon as possible.

It also urged EU countries to step up efforts to tackle unemployment, which could approach 10 percent in 2010 for the first time since the 1990s.

As the economic crisis deepened, cracks appeared when EU member states resort to their selfish national measures. Tensions rose between Western and Eastern European countries recently after some old EU members tend to take protectionist measures.

In order to dispel weeks of gloomy reports that the EU was sliding rudderless toward protectionism and division, EU leaders agreed on Sunday at an extraordinary summit to act together in response to the economic crisis.

Editor:Zhang Pengfei