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E.U. could increase its emergency fund

Marketplace Staff Mar 19, 2009
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E.U. could increase its emergency fund

Marketplace Staff Mar 19, 2009
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TEXT OF STORY

Renita Jablonski: European Union leaders are meeting today at a summit in Brussels. They’re expected to increase the E.U.’s emergency fund for its members in central and Eastern Europe, the areas worst hit by the economic crisis. Christopher Werth has that.


Christopher Werth: Frozen credit markets and weak economies continue to keep Europe’s former communist members unable to finance growing external deficits.

But help is coming from the European Union’s emergency fund. It was doubled in December to $32 billion, but even that is proving not to be enough. This month, Romania became the latest country that turned to the fund, and many say Lithuania could be next.

Katinka Barysch is with the Center for European Reform:

Katinka Barysch: Some of the countries in central and Eastern Europe, they had overheating economies and bubbles, and lending growth from the banks that was far too fast.

Last month, European leaders shot down a request for over $230 billion in aid for central and Eastern Europe. Instead, the E.U. is trying to tackle the crisis on a country by country basis. A decision at the summit this week could double the emergency fund for a second time.

In London, I’m Christopher Werth for Marketplace.

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