The emergency EU summit in Brussels, Sunday, rejected a plan for speedy entry to the Euro Zone, and a joint bailout plan for new central and eastern European states.
The main opposition came from Germany and Netherlands, who rejected Hungary’s call - backed by Poland - to ease strict rules where countries must stay within the ERM-2 exchange rate mechanism, and tie their currencies to the single currency within a 15 percent plus or minus corridor for at least two years.
French president, Nicholas Sarkozy said after the summit had ended that the plan to ease rules on joining the Euro Zone would be looked at once the finance crisis is over.
Poland is currently in talks with the European Central Bank on entering ERM-2 sometime this summer - a policy that has drawn strong criticism from the main opposition party, Law and Justice, and from the Eurosceptic President Lech Kaczynski who feels that the move is too risky in current economic conditions.
German chancellor, Angela Merkel also gave reasons for rejecting a joint bailout plan for the central and eastern European region, but promised help for countries on a case-by-case basis. “I don’t believe the situation is the same for all the countries” she said, adding that the situation in Hungary - which has already gone to the IMF for help after its currency dive bombed on the markets - is typical of the region.
Hungarian Prime Minister Ferenc Gyurcsany had called for a package worth 190 billion euros to restore investor confidence in the region.
But Prime Minister Donald Tusk tried to find some success for Poland in Brussels, saying that at least the 27 nation bloc has, in principle, rejected protectionism, an issue which prompted the current Czech presidency to call for the emergency summit in the first place.
“Our main call against national selfishness and protectionism was fulfilled 100 percent,” he said after the summit, referring to calls from President Sarkozy to protect national markets at a time of economic recession.
Prime Minister Tusk also claimed victory in the rejection of the idea to issue special Eurobonds to add liquidity to markets, which would have made Poland’s bonds less competitive on markets.
“I won’t claim that this is some kind of huge victory, but for sure we managed to get a confirmation of our stance,” said PM Tusk.
According to PM Tusk, the emergency anti-crisis summit in Brussels proved victorious for EU solidarity in the wake of the economic crisis, despite the region not getting much of what it wanted. (pg)