A Faltering Solidarity? EU Resists Eastern Bailout Pleas

The word “bailout” is not the exclusive property of American officials – it has been buzzing on the lips of leaders around the world as the crisis develops. The European Union has found itself in an especially tight spot since its member countries have experienced very different levels of economic hardship. While it is working towards a common recovery plan, the pressure is revealing old fissures between still distinct national interests. Eastern European countries have been hit the hardest, since their economies depend heavily on foreign credit, which is in short supply these days. The countries of Western Europe, notably Germany, whose pockets are deepest despite their own recession, seemed more inclined to protect their own interests, than lend a helping hand to a region already receiving billions in funds from the IMF, and the World Bank. Protectionist gestures have become a concern. Countries like France have been trying to keep industries – specifically the auto industry – in house. As the EU's official summit approaches at the end of March, the warning of the Hungarian Prime Minister Ferenc Gyurcsany "We should not allow a new 'Iron Curtain' to divide Europe into two parts" does not sound very far-fetched. – YaleGlobal