With a sense of financial debt

The EU has decided what they will bring to London

The heads of state and government of the European Union countries, in months of debate about ways to combat the crisis, found a route to the G20 meeting opening on April 2 in London. As a result of the EU summit that ended on Friday, it was decided to advocate for strengthening control and regulation of financial markets, as well as for the allocation of an additional 100 billion euros to combat the crisis.

Participants at the two-day summit left Brussels with a sense of accomplishment. “What we agreed on will help Europe overcome the economic crisis,” said Mirek Topolanek (pictured) , the Prime Minister of the Czech Republic, which chairs the European Union, with optimism. German Chancellor Angela Merkel, who even on the eve of the Brussels meeting criticized the “competition of countries” ready to provide billions for anti-crisis measures, was also pleased. She called the meeting in Brussels a “gratifying summit” where Germany was able to achieve its goals. The stumbling block for the chancellor was the 5 billion package discussed the day before, which Brussels proposed to allocate additionally for measures to improve market conditions. They talked about projects in the field of energy, broadband Internet, and agriculture. Germany called the proposals “the wrong signal” and demanded that only those projects be accepted for implementation, the real impact of which will be felt no later than next year. Only after the demand was accepted did Mrs. Merkel cast her vote in favor of new anti-crisis billions.

According to the Chancellor, the summit demonstrated the EU's capacity in a crisis. “There is a common will to overcome the crisis together,” Ms Merkel said. - This also applies to the upcoming decisions of the G20 in London. There will be a common European position here, in particular, at this summit we intend to significantly develop the topic of strengthening regulation of financial markets.”

Participants in the Brussels meeting also spoke in favor of doubling the current IMF budget to $500 billion. In addition, Europeans will contribute 75 billion euros, which Chancellor Merkel called a “shared responsibility” made up of voluntary contributions from participating countries. Brussels also approved another joint action: in order to support the economies of Eastern European countries, it was decided to double the size of emergency loans to 50 billion euros. Moreover, countries outside the euro area will be able to take out loans. The head of the European Commission, Jose Manuel Barroso, called this decision “a message of trust and solidarity.” So far, Hungary and Latvia have benefited from the support, receiving a total of about 10 billion euros.

The next extraordinary EU summit will take place on May 7 in Prague. However, contrary to established tradition, it will not be attended by the heads of state and government of the EU countries, but by the President of the European Union, the leaders of the European Commission, as well as representatives of employers and employees of Europe. In Prague, we will talk about the social consequences of the crisis and measures to counter them. In addition, it is planned to approve the new European program “Eastern Partnership”.

The European Union is preparing for closer political and economic cooperation with Armenia, Azerbaijan, Georgia, Moldova, Ukraine and Belarus. In Brussels, it was decided that by 2013, the countries participating in this program will receive 600 million euros from a specially created assistance fund.

Meanwhile, Russia has a very skeptical view of the Eastern Partnership, since this European project could become a political counterweight to its significant influence in the region. Through the implementation of the program, the European Union hopes to reduce the level of energy dependence on Russia thanks to new routes for natural gas supplies from the Caspian region to Europe. The EU will offer the six countries to conclude long-term agreements of association, which will include agreements on free trade, as well as the prospects for visa-free travel. But all this, from the EU point of view, does not mean that the countries of the former USSR have a real prospect of full-scale membership in the EU. Although in Ukraine, for example, they are considering future participation in the Eastern Partnership precisely in this direction. As stated in the final documents of the summit, the EU intends to use the partnership in order to bring countries closer to democratic values, the principles of the rule of law and respect for human rights. However, the EU has doubts about the prospects for Belarus' participation in the program. After all, it was only in the fall that Europe lifted the ban on the entry of President Alexander Lukashenko.

Yuri Shpakov