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WORLD> Europe
EU leaders meet to tackle financial crisis
(Xinhua)
Updated: 2009-03-01 20:19

BRUSSELS -- European Union leaders met here on Sunday for an emergency summit to deal with the economic crisis, which has jeopardized open trade within the 27-nation bloc and solidarity between its rich and poor members, the core of EU policies.

The summit, called by Czech Prime Minister Mirek Topolanek as his country holds the current EU presidency, is meant to forge a united European position before the summit of leaders from the G-20 group of leading economies scheduled for April 2 in London.

It is also designed to form solidarity within the bloc in fighting the economic crisis.

"All 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," said Topolanek in a statement before the summit.

"Europe will only overcome the crisis if we act together in a coordinated way and if we abide by the Community rules," he said.

He stressed that a united internal market was of vital importance.

"We must make the most of the opportunities offered by the internal market  we must make it the driving force of recovery, promoting economic growth and employment," he said.

The special summit comes as protectionism looms large within the Union resulted from the worst economic crisis in decades.

"European integrity and solidarity are now undergoing a severe trial," Topolanek wrote in Friday's Financial Times. "A system of subsidies and illegitimate loans will not bear the much-desired fruit, but rather grapes of wrath."

The Czechs have been particularly incensed by French plans to offer public aid to carmakers Renault and Peugeot-Citroen on condition that they commit not to laying off French workers -- a condition seen as threatening jobs of workers in factories owned by the French automakers in Eastern Europe.

French President Nicolas Sarkozy added to easterners' concern with recent televised comments that appeared to directly criticize the French companies for investing in the Czech Republic and other nations where costs are lower than in France.

Topolanek hopes the summit will restate governments'commitments to core values including the single European market and economic solidarity.

Leaders are also expected to consider practical measures such as increased financial sector regulation and common standards for dealing with "toxic" bank assets, although firm decision are unlikely until the bloc's next regular summit on March 19-20.

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