World Bank calls for eastern Europe bail-out
The World Bank called for intervention in central and eastern Europe on Wednesday (18 February) as the region struggles to deal with the financial crisis and economic downturn.
World Bank president Robert Zoellick said the bank was attempting to help the region along with the International Monetary Fund but needed more backing from Brussels, he admitted in an interview with the Financial Times on Wednesday.
“It’s got to have support from the European governments,” he said. “It’s 20 years after Europe was united in 1989. What a tragedy if you allow Europe to split again.”
Mr Zoellick hopes to announce a €20 billion ($25bn) trade finance plan before the G20 summit in London on 2 April.
Speaking at meeting on budget deficits on Wednesday, economy commissioner Joaquin Almunia appeared to pour cold water on a co-ordinated Brussels action for central and eastern Europe.
Listing countries such as EU member Romania, candidate country Croatia, and Ukraine, Mr Almunia said their different relationships with the EU executive meant that a single initiative for the region was not feasible.
“We think a lot of authorities should be involved in the coordination of the situation … but from our point of view, what we can not do is to use the same instruments to help these countries,” he said.
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